Vroom Stock Buy Hold or Sell Recommendation

VRM
 Stock
  

USD 0.95  0.10  9.52%   

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

Execute Vroom Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell VroomBuy Vroom
Strong Sell

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Not Available
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Vroom Inc has a Mean Deviation of 4.73, Standard Deviation of 5.93 and Variance of 35.15
We provide advice to complement the current expert consensus on Vroom. 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 Vroom Inc is not overpriced, please validate all Vroom fundamentals, including its ebitda, as well as the relationship between the current ratio and target price . As Vroom Inc appears to be a penny stock we also recommend to double-check its shares owned by institutions numbers.

Vroom Trading Alerts and Improvement Suggestions

Vroom Inc generated a negative expected return over the last 90 days
Vroom Inc has high historical volatility and very poor performance
Vroom Inc has some characteristics of a very speculative penny stock
The company reported the last year's revenue of 3.18 B. Reported Net Loss for the year was (370.91 M) with profit before taxes, overhead, and interest of 202.1 M.
Vroom Inc has about 546.07 M in cash with (568.69 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.95, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Latest headline from news.google.com: Baird Downgrades Vroom to Neutral From Outperform, Adjusts Price Target to 2 From 3 - Marketscreener.com

Vroom Returns Distribution Density

The distribution of Vroom's historical returns is an attempt to chart the uncertainty of Vroom's future price movements. The chart of the probability distribution of Vroom stock daily returns describes the distribution of returns around its average expected value. We use Vroom Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Vroom returns is essential to provide solid investment advice for Vroom.
Mean Return-0.59Value At Risk-9.28
Potential Upside8.57Standard Deviation5.93
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Vroom 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.

Vroom 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 Vroom or Specialty Retail 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 Vroom'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 Vroom 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 NYSE Composite
-0.73
β
Beta against NYSE Composite1.81
σ
Overall volatility
5.91
Ir
Information ratio -0.11

Vroom Volatility Alert

Vroom Inc exhibits very low volatility with skewness of 0.22 and kurtosis of 0.01. However, we advise investors to further study Vroom Inc technical indicators to ensure that all market info is available and is reliable. Vroom Inc is a potential penny stock. Although Vroom may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Vroom Inc. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Vroom instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Vroom Fundamentals Vs Peers

Comparing Vroom'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 Vroom's direct or indirect competition across all of the common fundamentals between Vroom and the related equities. This way, we can detect undervalued stocks with similar characteristics as Vroom or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Vroom's fundamental indicators could also be used in its relative valuation, which is a method of valuing Vroom by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Vroom to competition
FundamentalsVroomPeer Average
Return On Equity(0.82) %(0.31) %
Return On Asset(0.12) %(0.14) %
Profit Margin(0.23) %(1.27) %
Operating Margin(0.15) %(5.51) %
Current Valuation822.68 M16.62 B
Shares Outstanding138.17 M571.82 M
Shares Owned by Insiders4.03 %10.09 %
Shares Owned by Institutions32.25 %39.21 %
Number of Shares Shorted29.01 M4.71 M
Price to Book0.34 X9.51 X
Price to Sales0.05 X11.42 X
Revenue3.18 B9.43 B
Gross Profit202.1 M27.38 B
EBITDA(334.99 M)3.9 B
Net Income(370.91 M)570.98 M
Cash and Equivalents546.07 M2.7 B
Cash per Share3.95 X5.01 X
Total Debt610.62 M5.32 B
Debt to Equity2.90 %48.70 %
Current Ratio1.76 X2.16 X
Book Value Per Share3.22 X1.93 K
Cash Flow from Operations(568.69 M)971.22 M
Short Ratio5.34 X4.00 X
Earnings Per Share(4.41) X3.12 X
Price to Earnings To Growth0.02 X4.89 X
Target Price2.43
Number of Employees1.81 K18.84 K
Beta1.53-0.15
Market Capitalization145.08 M19.03 B
Total Asset2.37 B29.47 B
Net Asset2.37 B
   Sale by Zakowicz Agnieszka of 160 shares of Vroom [view details]

About Vroom Buy or Sell Advice

When is the right time to buy or sell Vroom Inc? Buying financial instruments such as Vroom 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 Vroom 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 Large Growth Thematic Idea Now

Large Growth
Large Growth Theme
Funds or Etfs that invest in stocks of large-sized companies with above-average risk and growth rate. The Large Growth 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 Large Growth Theme or any other thematic opportunities.
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Also, please take a look at Vroom 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. You can also try Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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Is Vroom'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 Vroom. If investors know Vroom 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 Vroom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
145.1 M
Quarterly Revenue Growth YOY
(0.62) 
Return On Assets
(0.12) 
Return On Equity
(0.82) 
The market value of Vroom Inc is measured differently than its book value, which is the value of Vroom that is recorded on the company's balance sheet. Investors also form their own opinion of Vroom's value that differs from its market value or its book value, called intrinsic value, which is Vroom'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 Vroom's market value can be influenced by many factors that don't directly affect Vroom'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 Vroom's value and its price as these two are different measures arrived at by different means. Investors typically determine Vroom value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vroom'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.