Helen Stock Story

HELE
 Stock
  

USD 134.98  2.13  1.55%   

Today we may see the proof that Colgate Palmolive would recover much slower from the new pull down as its shares went up 0.02% to Helen Of's 0.7114%. As many rational traders are trying to avoid consumer defensive space, it makes sense to digest Helen Of Troy a little further and understand how it stands against Colgate Palmolive and other similar entities. We are going to discuss some of the competitive aspects of both Helen and Colgate.
Published over a month ago
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Our viewpoint on Helen Of (NASDAQ:HELE) and Colgate Palmolive (NYSE:CL)?

By analyzing existing essential indicators between Helen Of and Colgate, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Colgate with a short position in Helen Of. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Helen Of has an asset utilization ratio of 120.07 percent. This indicates that the company is making $1.2 for each dollar of assets. An increasing asset utilization means that Helen Of Troy is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Helen or Procter is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Helen Of's Liquidity

Helen Of financial leverage refers to using borrowed capital as a funding source to finance Helen Of Troy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Helen Of financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Helen Of's total debt and its cash.

Correlation Between Helen and Procter Gamble

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Helen Of together with similar or unrelated positions with a negative correlation. For example, you can also add Procter Gamble to your portfolio. If Procter Gamble is not perfectly correlated to Helen Of it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Helen Of for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between HELE and PG for more information.

Note

Are you currently holding both Helen Of and Procter Gamble in your portfolio?
Please note if you are using this as a pair-trade strategy between Helen Of and Procter Gamble, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

An Additional Perspective On Helen Of Troy

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Helen Of revenue. Based on the latest financial disclosure, Helen Of Troy reported 2.22 B of revenue. This is 85.06% lower than that of the Consumer Defensive sector and 80.9% lower than that of the Household & Personal Products industry. The revenue for all United States stocks is 76.47% higher than that of the firm. As for Colgate Palmolive we see revenue of 17.48 B, which is 50.38% higher than that of the Household & Personal Products

Sector
9.4 B
CL
17.5 B
HELE2.22 Billion7.62
Sector9.43 Billion32.38
CL17.48 Billion60.0

Helen showing appearance of lower volatility

Latest maximum drawdown is at 15.95. Helen Of Troy exhibits very low volatility with skewness of -0.52 and kurtosis of 2.38. However, we advise investors to further study Helen Of Troy technical indicators to make sure 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 Helen Of'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 Helen Of'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.

Helen Of Implied Volatility

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

Our Takeaway on Helen Of Investment

Although other entities in the household & personal products industry are either recovering or due for a correction, Helen Of may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 7th of July 2022, our research shows that Helen Of is a rather very steady investment opportunity with a low probability of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our primary 90 days buy-hold-sell advice on the firm is Strong Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Helen Of Troy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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