Companhia Stock Buy Hold or Sell Recommendation

CBD
 Stock
  

USD 3.71  0.26  6.55%   

Considering the 90-day investment horizon and your way above-average risk tolerance, our recommendation regarding Companhia Brasileira DE is 'Strong Buy'. Macroaxis provides Companhia Brasileira buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CBD positions. The advice algorithm takes into account all of Companhia Brasileira's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Companhia Brasileira's buy-and-hold perspective. Continue to Companhia Brasileira Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Companhia and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Companhia Brasileira DE.

Execute Companhia Brasileira Buy or Sell Advice

The Companhia recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Companhia Brasileira DE. Macroaxis does not own or have any residual interests in Companhia Brasileira DE or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Companhia Brasileira's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Companhia BrasileiraBuy Companhia Brasileira
Strong Buy

Volatility

Details

Hype Condition

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Current Valuation

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Odds of Distress

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Economic Sensitivity

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Analyst Consensus

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Reporting Quality (M-Score)

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For the selected time horizon Companhia Brasileira DE has a Risk Adjusted Performance of 0.1529, Jensen Alpha of 0.4355, Total Risk Alpha of 0.5372, Sortino Ratio of 0.1506 and Treynor Ratio of 0.5633
We provide trade advice to complement the prevailing expert consensus on Companhia Brasileira. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Companhia Brasileira is not overpriced, please confirm all Companhia Brasileira fundamentals, including its shares owned by institutions, price to sales, net income, as well as the relationship between the price to earning and gross profit . Given that Companhia Brasileira has a price to book of 0.08 X, we suggest you to validate Companhia Brasileira DE market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Companhia Brasileira Trading Alerts and Improvement Suggestions

Companhia Brasileira has very high historical volatility over the last 90 days
Latest headline from simplywall.st: Is Companhia Brasileira de Distribuio Using Too Much Debt - Simply Wall St

Companhia Brasileira current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Companhia analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Companhia analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price5.50
Target Median Price5.50
Target High Price6.00
Recommendation Mean1.70
Number Of Analyst Opinions2
Target Low Price5.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Companhia Brasileira Returns Distribution Density

The distribution of Companhia Brasileira's historical returns is an attempt to chart the uncertainty of Companhia Brasileira's future price movements. The chart of the probability distribution of Companhia Brasileira stock daily returns describes the distribution of returns around its average expected value. We use Companhia Brasileira DE price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Companhia Brasileira returns is essential to provide solid investment advice for Companhia Brasileira.
Mean Return0.41Value At Risk-4.82
Potential Upside5.88Standard Deviation3.21
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Companhia Brasileira historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Companhia Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Companhia Brasileira is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Companhia Brasileira DE backward and forwards among themselves. Companhia Brasileira's institutional investor refers to the entity that pools money to purchase Companhia Brasileira's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Newfoundland Capital ManagementCommon Shares1.5 M4.7 M
Morgan StanleyCommon Shares1.4 M4.4 M
Millennium Management LlcCommon Shares1.4 M4.4 M
Bank Of America CorpCommon Shares1.2 M3.7 M
Ubs Group AgCommon Shares1.1 M3.4 M
Citadel Advisors LlcCommon Shares1.1 M3.3 M
Vanguard Group IncCommon Shares991.8 K3.1 M
Group One Trading LpPut Options230 K713 K
Note, although Companhia Brasileira's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Companhia Brasileira Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Companhia Brasileira or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Companhia Brasileira's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Companhia stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.44
β
Beta against DOW0.71
σ
Overall volatility
3.41
Ir
Information ratio 0.14

Companhia Brasileira Volatility Alert

Companhia Brasileira DE currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.44. However, we advise investors to further question Companhia Brasileira DE expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Companhia Brasileira's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Companhia Brasileira'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.

Companhia Brasileira Fundamentals Vs Peers

Comparing Companhia Brasileira's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Companhia Brasileira's direct or indirect competition across all of the common fundamentals between Companhia Brasileira and the related equities. This way, we can detect undervalued stocks with similar characteristics as Companhia Brasileira or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Companhia Brasileira's fundamental indicators could also be used in its relative valuation, which is a method of valuing Companhia Brasileira by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Companhia Brasileira to competition
FundamentalsCompanhia BrasileiraPeer Average
Return On Equity3.64 %(0.31) %
Return On Asset2.63 %(0.14) %
Profit Margin3.65 %(1.27) %
Operating Margin5.49 %(5.51) %
Current Valuation14.15 B16.62 B
Shares Outstanding269.25 M571.82 M
Shares Owned by Institutions5.81 %39.21 %
Number of Shares Shorted1.21 M4.71 M
Price to Earning2.77 X28.72 X
Price to Book0.08 X9.51 X
Price to Sales0.02 X11.42 X
Revenue52.38 B9.43 B
Gross Profit12.95 B27.38 B
EBITDA2.87 B3.9 B
Net Income394 M570.98 M
Cash and Equivalents3.92 B2.7 B
Cash per Share14.55 X5.01 X
Total Debt14.73 B5.32 B
Debt to Equity0.88 %48.70 %
Current Ratio1.06 X2.16 X
Book Value Per Share51.08 X1.93 K
Cash Flow from Operations1.6 B971.22 M
Short Ratio1.19 X4.00 X
Earnings Per Share1.49 X3.12 X
Price to Earnings To Growth(0.10) X4.89 X
Number of Employees110 K18.84 K
Beta0.8-0.15
Market Capitalization1.11 B19.03 B
Total Asset47.24 B29.47 B
Retained Earnings4.16 B9.33 B
Working Capital(313 M)1.48 B
Current Asset24.96 B9.34 B
Current Liabilities25.27 B7.9 B

Companhia Brasileira Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Companhia . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Companhia Brasileira Buy or Sell Advice

When is the right time to buy or sell Companhia Brasileira DE? Buying financial instruments such as Companhia Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Companhia Brasileira in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run IT Thematic Idea Now

IT
IT Theme
Information Technology (IT) companies and IT service providers across different domains. The IT theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize IT Theme or any other thematic opportunities.
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Continue to Companhia Brasileira Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Companhia Brasileira information on this page should be used as a complementary analysis to other Companhia Brasileira's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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Is Companhia Brasileira's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Companhia Brasileira. If investors know Companhia will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Companhia Brasileira listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Companhia Brasileira is measured differently than its book value, which is the value of Companhia that is recorded on the company's balance sheet. Investors also form their own opinion of Companhia Brasileira's value that differs from its market value or its book value, called intrinsic value, which is Companhia Brasileira's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Companhia Brasileira's market value can be influenced by many factors that don't directly affect Companhia Brasileira's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Companhia Brasileira's value and its price as these two are different measures arrived at by different means. Investors typically determine Companhia Brasileira value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Companhia Brasileira's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.