New Oriental Stock Buy Hold or Sell Recommendation

EDU
 Stock
  

USD 23.97  1.19  4.73%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding New Oriental Education is 'Strong Hold'. Macroaxis provides New Oriental buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding EDU positions. The advice algorithm takes into account all of New Oriental's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from New Oriental's buy-and-hold perspective. Continue to New Oriental 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 New Oriental and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards New Oriental Education.

Execute New Oriental Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell New OrientalBuy New Oriental
Strong Hold

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 New Oriental Education has a Risk Adjusted Performance of 0.1025, Jensen Alpha of 0.4167, Total Risk Alpha of 0.7824, Sortino Ratio of 0.119 and Treynor Ratio of 0.5324
Our advice module complements current analysts and expert consensus on New Oriental Education. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time. To make sure New Oriental Education is not overpriced, please verify all New Oriental Education fundamentals, including its gross profit, short ratio, current liabilities, as well as the relationship between the total debt and market capitalization . Given that New Oriental Education has a price to earning of 91.83 X, we recommend you to check New Oriental market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

New Oriental Trading Alerts and Improvement Suggestions

New Oriental has very high historical volatility over the last 90 days
The company reported the last year's revenue of 3.11 B. Reported Net Loss for the year was (1.19 B) with profit before taxes, overhead, and interest of 1.35 B.
New Oriental Education has about 4.19 B in cash with (1.28 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 24.7, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
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New Oriental current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. New Oriental 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. New Oriental 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 Price34.39
Target Median Price34.05
Target High Price54.00
Recommendation Mean1.80
Number Of Analyst Opinions12
Target Low Price21.00
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.

New Oriental Returns Distribution Density

The distribution of New Oriental's historical returns is an attempt to chart the uncertainty of New Oriental's future price movements. The chart of the probability distribution of New Oriental stock daily returns describes the distribution of returns around its average expected value. We use New Oriental Education price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of New Oriental returns is essential to provide solid investment advice for New Oriental.
Mean Return0.35Value At Risk-5.48
Potential Upside7.03Standard Deviation4.19
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of New Oriental 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.

New Oriental Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as New Oriental is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading New Oriental Education backward and forwards among themselves. New Oriental's institutional investor refers to the entity that pools money to purchase New Oriental'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
Baupost Group LlcCommon SharesM162.9 M
Alkeon Capital Management LlcCommon Shares7.1 M145.4 M
Morgan StanleyCommon SharesM101.5 M
Vanguard Group IncCommon Shares4.8 M98.5 M
Renaissance Technologies LlcCommon Shares4.4 M90.4 M
Yiheng Capital Management LpCommon Shares3.9 M80.3 M
Susquehanna International Group LlpPut Options3.9 M79.4 M
Carmignac GestionCommon Shares3.6 M73 M
Susquehanna International Group LlpCall Options1.2 M24.8 M
Note, although New Oriental'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.

New Oriental 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 New Oriental or Consumer Defensive 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 New Oriental'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 New Oriental 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
0.42
β
Beta against DOW0.64
σ
Overall volatility
4.02
Ir
Information ratio 0.11

New Oriental Volatility Alert

New Oriental Education shows above-average downside volatility for the selected time horizon. We advise investors to inspect New Oriental Education further and ensure that all market timing and asset allocation strategies are consistent with the estimation of New Oriental future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure New Oriental'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 New Oriental'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.

New Oriental Implied Volatility

New Oriental's implied volatility exposes the market's sentiment of New Oriental Education stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if New Oriental'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 New Oriental stock will not fluctuate a lot when New Oriental's options are near their expiration.

New Oriental Fundamentals Vs Peers

Comparing New Oriental'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 New Oriental's direct or indirect competition across all of the common fundamentals between New Oriental and the related equities. This way, we can detect undervalued stocks with similar characteristics as New Oriental or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of New Oriental's fundamental indicators could also be used in its relative valuation, which is a method of valuing New Oriental by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare New Oriental to competition
FundamentalsNew OrientalPeer Average
Return On Equity(27.70) %(0.31) %
Return On Asset(7.59) %(0.14) %
Profit Margin(38.25) %(1.27) %
Operating Margin(24.22) %(5.51) %
Current Valuation317.59 M16.62 B
Shares Outstanding169.7 M571.82 M
Shares Owned by Insiders1.91 %10.09 %
Shares Owned by Institutions54.77 %39.21 %
Number of Shares Shorted8.75 M4.71 M
Price to Earning91.83 X28.72 X
Price to Book1.10 X9.51 X
Price to Sales1.30 X11.42 X
Revenue3.11 B9.43 B
Gross Profit1.35 B27.38 B
EBITDA(752.07 M)3.9 B
Net Income(1.19 B)570.98 M
Cash and Equivalents4.19 B2.7 B
Cash per Share24.70 X5.01 X
Total Debt680.41 M5.32 B
Debt to Equity0.18 %48.70 %
Current Ratio2.62 X2.16 X
Book Value Per Share21.84 X1.93 K
Cash Flow from Operations(1.28 B)971.22 M
Short Ratio4.62 X4.00 X
Earnings Per Share(6.18) X3.12 X
Price to Earnings To Growth1.85 X4.89 X
Number of Employees88.13 K18.84 K
Beta0.52-0.15
Market Capitalization4.04 B19.03 B
Total Asset2.35 B29.47 B
Retained Earnings2.04 B9.33 B
Working Capital951.15 M1.48 B
Current Asset1.87 B9.34 B

About New Oriental Buy or Sell Advice

When is the right time to buy or sell New Oriental Education? Buying financial instruments such as New Oriental 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

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Health Management
Health Management Theme
Major hospitals and healthcare providers. The Health Management theme has 40 constituents at this time.
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Continue to New Oriental 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 New Oriental Education information on this page should be used as a complementary analysis to other New Oriental'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 Global Correlations module to find global opportunities by holding instruments from different markets.

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When running New Oriental Education price analysis, check to measure New Oriental's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy New Oriental is operating at the current time. Most of New Oriental's value examination focuses on studying past and present price action to predict the probability of New Oriental's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move New Oriental's price. Additionally, you may evaluate how the addition of New Oriental to your portfolios can decrease your overall portfolio volatility.
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Is New Oriental'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 New Oriental. If investors know New Oriental 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 New Oriental 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 New Oriental Education is measured differently than its book value, which is the value of New Oriental that is recorded on the company's balance sheet. Investors also form their own opinion of New Oriental's value that differs from its market value or its book value, called intrinsic value, which is New Oriental'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 New Oriental's market value can be influenced by many factors that don't directly affect New Oriental'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 New Oriental's value and its price as these two are different measures arrived at by different means. Investors typically determine New Oriental value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, New Oriental'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.