Dada Nexus Stock Buy Hold or Sell Recommendation

DADA
 Stock
  

USD 4.74  0.02  0.42%   

Given the investment horizon of 90 days and your complete indifference towards market risk, our recommendation regarding Dada Nexus is 'Strong Buy'. Macroaxis provides Dada Nexus buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding DADA positions. The advice algorithm takes into account all of Dada Nexus' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Dada Nexus' buy-and-hold perspective. Continue to Dada Nexus 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 Dada Nexus and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Dada Nexus.

Execute Dada Nexus Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell Dada NexusBuy Dada Nexus
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Dada Nexus has a Risk Adjusted Performance of (0.17), Jensen Alpha of (0.65), Total Risk Alpha of (0.52) and Treynor Ratio of (0.60)
We provide trade advice to complement the prevailing expert consensus on Dada Nexus. 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 Dada Nexus is not overpriced, please confirm all Dada Nexus fundamentals, including its operating margin, shares owned by institutions, revenue, as well as the relationship between the shares outstanding and price to book . Given that Dada Nexus has a shares owned by institutions of 22.75 %, we urge you to verify Dada Nexus 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.

Dada Nexus Trading Alerts and Improvement Suggestions

Dada Nexus generated a negative expected return over the last 90 days
Dada Nexus has high historical volatility and very poor performance
The company reported the previous year's revenue of 7.22 B. Net Loss for the year was (2.37 B) with profit before overhead, payroll, taxes, and interest of 1.73 B.
Dada Nexus currently holds about 4.49 B in cash with (2.66 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 17.25, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Latest headline from www.benzinga.com: 10 Consumer Discretionary Stocks Moving In Fridays Pre-Market Session - Aspen Gr , Cricut - Benzinga

Dada Nexus current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Dada Nexus 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. Dada Nexus 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 Price15.52
Target Median Price11.73
Target High Price27.85
Recommendation Mean1.50
Number Of Analyst Opinions12
Target Low Price9.28
Average Consensus Buy
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.

Dada Nexus Returns Distribution Density

The distribution of Dada Nexus' historical returns is an attempt to chart the uncertainty of Dada Nexus' future price movements. The chart of the probability distribution of Dada Nexus stock daily returns describes the distribution of returns around its average expected value. We use Dada Nexus price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Dada Nexus returns is essential to provide solid investment advice for Dada Nexus.
Mean Return-0.7Value At Risk-7.22
Potential Upside7.03Standard Deviation4.52
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Dada Nexus 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.

Dada Nexus Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Dada Nexus is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Dada Nexus backward and forwards among themselves. Dada Nexus' institutional investor refers to the entity that pools money to purchase Dada Nexus' 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
Jpmorgan Chase CoCommon Shares9.9 M80.3 M
Galileo Ptc LtdCommon Shares6.7 M54.6 M
Baillie Gifford CoCommon Shares4.7 M37.7 M
Rovida Advisors IncCommon Shares4.6 M37.4 M
Krane Funds Advisors LlcCommon Shares3.4 M27.4 M
Vanguard Group IncCommon Shares2.3 M18.4 M
Principal Financial Group IncCommon Shares1.8 M14.8 M
Note, although Dada Nexus' 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.

Dada Nexus 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 Dada Nexus 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 Dada Nexus' 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 Dada Nexus 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
-0.65
β
Beta against DOW1.18
σ
Overall volatility
4.47
Ir
Information ratio -0.15

Dada Nexus Volatility Alert

Dada Nexus exhibits very low volatility with skewness of 0.21 and kurtosis of -0.94. However, we advise investors to further study Dada Nexus technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dada Nexus' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dada Nexus' 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.

Dada Nexus Fundamentals Vs Peers

Comparing Dada Nexus' 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 Dada Nexus' direct or indirect competition across all of the common fundamentals between Dada Nexus and the related equities. This way, we can detect undervalued stocks with similar characteristics as Dada Nexus or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Dada Nexus' fundamental indicators could also be used in its relative valuation, which is a method of valuing Dada Nexus by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Dada Nexus to competition
FundamentalsDada NexusPeer Average
Return On Equity(32.43) %(0.31) %
Return On Asset(16.99) %(0.14) %
Profit Margin(32.76) %(1.27) %
Operating Margin(34.12) %(5.51) %
Current Valuation(2.64 B)16.62 B
Shares Outstanding233.93 M571.82 M
Shares Owned by Insiders2.70 %10.09 %
Shares Owned by Institutions22.75 %39.21 %
Number of Shares Shorted1.75 M4.71 M
Price to Book0.18 X9.51 X
Price to Sales0.15 X11.42 X
Revenue7.22 B9.43 B
Gross Profit1.73 B27.38 B
EBITDA(2.27 B)3.9 B
Net Income(2.37 B)570.98 M
Cash and Equivalents4.49 B2.7 B
Cash per Share17.25 X5.01 X
Total Debt171.18 M5.32 B
Debt to Equity0.02 %48.70 %
Current Ratio4.69 X2.16 X
Book Value Per Share26.87 X1.93 K
Cash Flow from Operations(2.66 B)971.22 M
Short Ratio1.88 X4.00 X
Earnings Per Share(1.78) X3.12 X
Price to Earnings To Growth1.68 X4.89 X
Number of Employees3.13 K18.84 K
Beta1.13-0.15
Market Capitalization1.11 B19.03 B
Z Score3.68.72

About Dada Nexus Buy or Sell Advice

When is the right time to buy or sell Dada Nexus? Buying financial instruments such as Dada Nexus 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.

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In addition to having Dada Nexus 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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Continue to Dada Nexus 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 Dada Nexus information on this page should be used as a complementary analysis to other Dada Nexus' 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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Is Dada Nexus' 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 Dada Nexus. If investors know Dada Nexus 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 Dada Nexus 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 Dada Nexus is measured differently than its book value, which is the value of Dada Nexus that is recorded on the company's balance sheet. Investors also form their own opinion of Dada Nexus' value that differs from its market value or its book value, called intrinsic value, which is Dada Nexus' 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 Dada Nexus' market value can be influenced by many factors that don't directly affect Dada Nexus' 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 Dada Nexus' value and its price as these two are different measures arrived at by different means. Investors typically determine Dada Nexus value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dada Nexus' 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.