Will Vnet (NASDAQ:VNET) price continue to gain in May?

VNET
 Stock
  

USD 5.54  0.03  0.54%   

As many millenniums are trying to avoid technology space, it makes sense to review Vnet Group a little further and try to understand its current market patterns. As expected, Vnet is starting to reaffirm its true potential as private investors are becoming more and more confident in the future outlook. Large number of the gravitations of the company stock price movements has been a demonstration of what is happening in the market overall. The indication of stable technical and fundamental indicators of the firm implies a short-horizon price swing for private investors of Vnet. The stock is currently undergoing an active upward rally.
Published over three months ago
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The company's average rating is Sell from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Vnet market sentiment investors' perception of the future value of Vnet. Let us look at a few aspects of Vnet technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Vnet Group. In general, we focus on analyzing Vnet stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Vnet's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Vnet's intrinsic value. In addition to deriving basic predictive indicators for Vnet, we also check how macroeconomic factors affect Vnet price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Vnet's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Vnet in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Vnet. Your research has to be compared to or analyzed against Vnet's peers to derive any actionable benefits. When done correctly, Vnet's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Vnet Group.

How important is Vnet's Liquidity

Vnet financial leverage refers to using borrowed capital as a funding source to finance Vnet Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vnet financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Vnet's total debt and its cash.

How does Vnet utilize its cash?

To perform a cash flow analysis of Vnet, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Vnet is receiving and how much cash it distributes out in a given period. The Vnet cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Closer look at Vnet Standard Deviation

Vnet Group has current Standard Deviation of 12.83. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.

Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation 
=  
SQRT(V) 
 = 
12.83
SQRT = Square root notation
V =   Variance of Vnet returns
Let's now compare Vnet Standard Deviation to its closest peers:
VNET
RENN
VRSN
NTES
SATS
VNET12.826543678119037
RENN3.64
VRSN1.78
NTES4.91
SATS2.93

Vnet implied volatility may change after the gain

Newest expected short fall indicator falls down to -8.38. Possible price appreciation? Vnet Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Vnet Group independently to ensure intended market timing strategies are aligned with expectations about Vnet volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vnet's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vnet's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Vnet Implied Volatility

Vnet's implied volatility exposes the market's sentiment of Vnet Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Vnet's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Vnet stock will not fluctuate a lot when Vnet's options are near their expiration.

The Bottom Line

Whereas some other entities within the information technology services industry are still a little expensive, even after the recent corrections, Vnet may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of Vnet at this time. The Vnet Group risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Vnet.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Vnet Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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