Grom Social Enterprises has an average rating of 'Strong Buy' from one analyst. Is this consensus based on technical analysis? As we know, typical technical analysis employs price momentum, patterns, and trends by examining historical prices. The goal is to identify signals based on the market sentiment of Grom Social Enterprises' investors and their perception of the company's future value. Let's delve into a few aspects of Grom's technical analysis.
The company has a Profit Margin (PM) of -2.73%, which may suggest that it is not effectively implementing its current pricing strategies or is unable to manage all of its operational costs. This is significantly below average. Similarly, it has an Operating Margin (OM) of -2.43%, indicating that for every $100 in sales, it incurs a net operating loss of $2.43.
Grom Social Enterprises (NASDAQ: GROM) has recently been showing some promising signs of a potential bullish reversal. The company's stock opened at $1.28
and saw a high of $1.34
, demonstrating a price percent change of 3.91%
. This upward movement in price, combined with a significant trading volume of 51.7K
shares, suggests increased investor interest and a potential shift in market sentiment
towards the stock. However, it's crucial to note that Grom Social Enterprises reported a net income loss of $16.8M
from continuing operations, which may have contributed to the recent downward pressure on the stock. Despite this, the company's potential upside of 12.7%
indicates room for growth and may attract investors looking for a high-risk, high-reward play. In terms of risk, the stock's mean deviation of 5.88
and standard deviation of 9.43
suggest a high level of volatility. This could mean larger price swings, which, while potentially profitable for short-term traders, may not be suitable for more risk-averse investors. In conclusion, while Grom Social Enterprises shows signs of a possible bullish reversal, investors should carefully consider the company's financial health
and inherent market risk before deciding to invest.
Using predictive technical analysis
, we can analyze different prices and returns patterns and diagnose historical swings
to determine the real value of Grom Social Enterprises. In general, sophisticated investors focus on analyzing Grom Social stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Grom Social's daily price indicators and compare them against related drivers such as momentum indicators
and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis
and fundamental analysis
, we attempt to find the most accurate representation of Grom Social's intrinsic value
. In addition to deriving basic predictive indicators for Grom Social, many experienced traders also check how macroeconomic factors affect Grom Social price patterns. Please read more on our technical analysis
page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs
, frequently view the market will even out over time. This tendency of Grom Social's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Grom Social in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Grom Social. Your research has to be compared to or analyzed against Grom Social's peers to derive any actionable benefits. When done correctly, Grom Social's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Grom Social Enterprises.
Watch out for price decline
Please consider monitoring Grom Social on a daily basis if you are holding a position in it. Grom Social is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges
require public instruments, such as Grom Social stock to be traded above the $1 level to remain listed. If Grom Social stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How does Grom Stands against Peers?
Analyzing Grom Social competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Grom Social across multiple sectors and thematic ideas
. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out Grom Social Competition Details
Grom Social Gross Profit
Grom Social Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Grom Social previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Grom Social Gross Profit growth over the last 10 years. Please check Grom Social's gross profit
and other fundamental indicators
for more details.
A Deeper look at Grom
The entity has a beta of -0.297. Grom Social returns are very sensitive to returns on the market. As the market goes up or down, Grom Social is expected to follow. The beta indicator helps investors understand whether Grom Social moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Grom deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The big decline in price over the last few months for Grom Socialmay raise some interest from insiders. The stock closed today at a share price of 1.33
in trading volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit market volatility
. However, diversifying your holdings with Grom Social Enterprises or similar stocks can still protect your portfolios during high-volatility market scenarios.
The stock standard deviation of daily returns for 90 days investing horizon is currently 9.56. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Grom Social Enterprises partners. "As goes January, so goes the year," is a Wall Street adage that may hold some truth for Grom Social Enterprises (NASDAQ: GROM). The company's stock has been under significant pressure, with a 52-week low of 1.155. However, the stock's 50-day moving average of 2.265 suggests a potential bullish reversal. The company's potential upside of 12.7, coupled with a Wall Street target price of 12, further reinforces this possibility. Despite the company's net income loss of 16.8M and a high probability of bankruptcy at 96.00%, the current technicals indicate that GROM may be on the cusp of a turnaround. However, investors should tread carefully given the company's total risk alpha of -1.13, indicating a higher level of risk compared to the market. The stock's beta of 0.98 also suggests it is nearly as volatile as the market. .
Can Grom Social build up on the recent roll up?
The recent Treynor ratio for Grom Social Enterprises stands at 6.58. This company has been exhibiting above-average volatility over the chosen time period. Investors are advised to thoroughly analyze Grom Social Enterprises independently to ensure that their intended market timing
strategies align with their expectations regarding the company's volatility. Understanding the various trends in market volatility
can often assist investors in timing the market effectively. The correct use of volatility indicators allows traders to gauge the risk of Grom Social's stock against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect Grom Social's stock price
, causing stress for investors as they witness a decline in the value of their shares.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In light of the data, it seems that now might be an opportune moment to consider investing in Grom Social Enterprises. With an analyst overall consensus of a Strong Buy
and the analyst's highest estimated target price standing at a substantial $12
, the potential upside price of $10.67 suggests a promising return. The company's focus on delivering content for children under 13 years and its diverse operations, including animated film production and web filtering services, provide a unique market niche. However, it's important to note the valuation real value of $3.98, which is significantly lower than the analyst target price estimated value. As always, potential investors should carefully consider their risk tolerance and investment goals before making a decision. .
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