New Oriental Stock Performance

EDU
 Stock
  

USD 24.42  2.38  10.80%   

On a scale of 0 to 100, New Oriental holds a performance score of 6. The company secures a Beta (Market Risk) of 0.7161, which conveys possible diversification benefits within a given portfolio. Let's try to break down what New Oriental's beta means in this case. As returns on the market increase, New Oriental returns are expected to increase less than the market. However, during the bear market, the loss on holding New Oriental will be expected to be smaller as well. Although it is vital to follow New Oriental Education price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing New Oriental Education technical indicators, you can presently evaluate if the expected return of 0.38% will be sustainable into the future. Please exercises New Oriental Education potential upside, as well as the relationship between the kurtosis and day typical price to make a quick decision on whether New Oriental Education current price movements will revert.
  
New Oriental Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in New Oriental Education are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, New Oriental unveiled solid returns over the last few months and may actually be approaching a breakup point. ...more

New Oriental Price Channel

Quick Ratio2.47
Fifty Two Week Low8.40
Target High Price41.20
Fifty Two Week High29.80
Target Low Price18.30

New Oriental Relative Risk vs. Return Landscape

If you would invest  1,837  in New Oriental Education on June 28, 2022 and sell it today you would earn a total of  367.00  from holding New Oriental Education or generate 19.98% return on investment over 90 days. New Oriental Education is generating 0.3758% of daily returns assuming volatility of 4.2048% on return distribution over 90 days investment horizon. In other words, 36% of stocks are less volatile than New Oriental, and above 93% of all equities are expected to generate higher returns over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Considering the 90-day investment horizon New Oriental is expected to generate 3.82 times more return on investment than the market. However, the company is 3.82 times more volatile than its market benchmark. It trades about 0.09 of its potential returns per unit of risk. The DOW is currently generating roughly -0.07 per unit of risk.

New Oriental Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for New Oriental's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as New Oriental Education, and traders can use it to determine the average amount a New Oriental's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0894

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Estimated Market Risk
 4.2
  actual daily
 
 36 %
of total potential
 
3636
Expected Return
 0.38
  actual daily
 
 7 %
of total potential
 
77
Risk-Adjusted Return
 0.09
  actual daily
 
 6 %
of total potential
 
66
Based on monthly moving average New Oriental is performing at about 6% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of New Oriental by adding it to a well-diversified portfolio.

About New Oriental Performance

To evaluate New Oriental Education Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when New Oriental generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare New Oriental Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand New Oriental Education market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents New Oriental's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
New Oriental Education Technology Group Inc. provides private educational services under the New Oriental brand in the Peoples Republic of China. The company was founded in 1993 and is headquartered in Beijing, the Peoples Republic of China. New Oriental operates under Education Training Services classification in the United States and is traded on New York Stock Exchange.

Things to note about New Oriental Education

Checking the ongoing alerts about New Oriental for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for New Oriental Education help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

New Oriental Alerts

Equity Alerts and Improvement Suggestions

New Oriental has very high historical volatility over the last 90 days
New Oriental is unlikely to experience financial distress in the next 2 years
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.
Roughly 65.0% of the company shares are held by institutions such as insurance companies
Latest headline from www.investorsobserver.com: Premarket Mover New Oriental Education Tech Grp Up 2.27 percent - InvestorsObserver
Continue to Investing Opportunities. 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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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.