Stem Stock Buy Hold or Sell Recommendation

STEM -  USA Stock  

USD 7.39  0.45  6.48%

Given the investment horizon of 90 days and your below-average risk tolerance, our recommendation regarding Stem Inc is 'Strong Sell'. Macroaxis provides Stem buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Stem positions. The advice algorithm takes into account all of Stem's available fundamental, technical, and predictive indicators you will find on this site.
  
Refresh
The advice is provided from Stem's buy-and-hold perspective. Additionally, take a look at Stem 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 Stem and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Stem Inc.

Execute Stem Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell StemBuy Stem
Strong Sell

Volatility

Relatively riskyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds of Distress

Close to AverageDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Analyst Consensus

HoldDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Stem Inc has a Mean Deviation of 5.7, Standard Deviation of 7.3 and Variance of 53.29
We provide advice to complement the current expert consensus on Stem. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure Stem Inc is not overpriced, please validate all Stem fundamentals, including its number of shares shorted, debt to equity, retained earnings, as well as the relationship between the ebitda and earnings per share . Given that Stem Inc has a number of shares shorted of 13.97 M, we advise you to double-check Stem Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Stem Trading Alerts and Improvement Suggestions

Stem Inc generated a negative expected return over the last 90 days
Stem Inc has high historical volatility and very poor performance
The company reported the previous year's revenue of 127.37 M. Net Loss for the year was (101.21 M) with profit before overhead, payroll, taxes, and interest of 5.85 M.
Stem Inc currently holds about 920.79 M in cash with (101.27 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.0.
Latest headline from MacroaxisInsider: Sale by John Carrington of 28580 shares of Stem

Stem current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Stem 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. Stem 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 Price19.11
Target Median Price19.00
Target High Price28.00
Recommendation Mean1.90
Number Of Analyst Opinions7
Target Low Price13.00
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.

Stem Returns Distribution Density

The distribution of Stem's historical returns is an attempt to chart the future uncertainty of Stem's future price movements. The chart of the probability distribution of Stem stock daily returns describes the distribution of returns around its average expected value. We use Stem Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Stem returns is essential to provide solid investment advice for Stem stock.
Mean Return-0.18Value At Risk-9.85
Potential Upside11.31Standard Deviation7.30
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Stem 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.

Stem 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 Stem or Stem Inc 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 Stem stock'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 Stem 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
-0.05
β
Beta against DOW2.04
σ
Overall volatility
6.70
Ir
Information ratio -0.02

Stem Volatility Alert

Stem Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Stem Inc independently to ensure intended market timing strategies are aligned with expectations about Stem volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Stem'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 Stem'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.

Stem Implied Volatility

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

Stem Fundamentals Vs Peers

Comparing Stem'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 Stem's direct or indirect competition across all of the common fundamentals between Stem and the related equities. This way, we can detect undervalued stocks with similar characteristics as Stem or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Stem's fundamental indicators could also be used in its relative valuation, which is a method of valuing Stem by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Stem to competition
FundamentalsStemPeer Average
Return On Equity(34.56) %(0.31) %
Return On Asset(7.02) %(0.14) %
Profit Margin(79.46) %(1.27) %
Operating Margin(61.61) %(5.51) %
Current Valuation599.54 M16.62 B
Shares Outstanding144.49 M571.82 M
Shares Owned by Insiders9.07 %10.09 %
Shares Owned by Institutions54.17 %39.21 %
Number of Shares Shorted13.97 M4.71 M
Price to Book1.74 X9.51 X
Price to Sales8.61 X11.42 X
Revenue127.37 M9.43 B
Gross Profit5.85 M27.38 B
EBITDA(59.07 M)3.9 B
Net Income(101.21 M)570.98 M
Cash and Equivalents920.79 M2.7 B
Cash per Share6.00 X5.01 X
Total Debt420.13 M5.32 B
Debt to Equity0.63 %48.70 %
Current Ratio11.64 X2.16 X
Book Value Per Share4.37 X1.93 K
Cash Flow from Operations(101.27 M)971.22 M
Short Ratio4.49 X4.00 X
Earnings Per Share(3.46) X3.12 X
Number of Employees21318.84 K
Beta-1.22-0.15
Market Capitalization1.1 B19.03 B
Total Asset2.14 M29.47 B
Retained Earnings(467.98 M)9.33 B
Working Capital(1.36 M)1.48 B
Current Asset2.11 M9.34 B
Current Liabilities3.47 M7.9 B
   Sale by John Carrington of 28580 shares of Stem [view details]

About Stem Buy or Sell Advice

When is the right time to buy or sell Stem Inc? Buying financial instruments such as Stem Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock 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. Although Stem investors may find it confusing at the beginning, 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 Stem 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.

Did You Try This Idea?

Run Climate Change Thematic Idea Now

Climate Change
Climate Change Theme
Large and medium sized entities that are committing to fully or partially replace some traditional services or products with renewables sources of energy in order to combat global climate change. The Climate Change theme has 37 constituents.
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 Climate Change Theme or any other thematic opportunities.
View All  Next Launch Climate Change
Additionally, take a look at Stem 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 Stem Inc information on this page should be used as a complementary analysis to other Stem'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Complementary Tools for Stem Stock analysis

When running Stem Inc price analysis, check to measure Stem'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 Stem is operating at the current time. Most of Stem's value examination focuses on studying past and present price action to predict the probability of Stem's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Stem's price. Additionally, you may evaluate how the addition of Stem to your portfolios can decrease your overall portfolio volatility.
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Is Stem'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 Stem. If investors know Stem 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 Stem 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 Stem Inc is measured differently than its book value, which is the value of Stem that is recorded on the company's balance sheet. Investors also form their own opinion of Stem's value that differs from its market value or its book value, called intrinsic value, which is Stem'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 Stem's market value can be influenced by many factors that don't directly affect Stem'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 Stem's value and its price as these two are different measures arrived at by different means. Investors typically determine Stem value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stem'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.