Timing is everything, especially when it comes to investing. iRobot, a key player in the household durables sector, has recently experienced a modest 2% pullback, presenting a potentially attractive entry point for investors. Despite the broader market's upward trajectory, this dip could be an opportunity to buy into a company with a solid footing in the consumer cyclical category. With the stock trading on the NASDAQ and analysts maintaining a consensus of 'Hold,' the current valuation suggests a real value of $2.42, slightly below its market value of $2.52. This subtle discrepancy might just be the window savvy investors are looking for. Let's take a look at what's going on with iRobot in these uncertain political and economic times. The stock is currently priced at $2.52. Historically, iRobot's stock has shown a hype elasticity of -0.17, meaning it doesn't react strongly to market buzz. In comparison, its competitors have an average hype elasticity of -0.56. The expected immediate return from upcoming news is minimal, with a daily expected return of -1.31%. The stock's hype-related volatility is extremely high at 2025.0%. Looking ahead, with a 90-day investment horizon, the next significant announcement is anticipated in about 11 days.
The successful prediction of IRobot
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as iRobot, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of IRobot based on IRobot hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to IRobot's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to IRobot's related companies.
Use Technical Analysis to project IRobot expected Price
IRobot technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of IRobot technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of IRobot trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Breaking down IRobot Further
The entity reported the previous year's revenue of 681.85
M. Net Loss for the year was (145.52
M) with profit before overhead, payroll, taxes, and interest of 551.52
M.
Current Deferred Revenue Breakdown
IRobot Current Deferred Revenue yearly trend continues to be comparatively stable with very little volatility. Current Deferred Revenue will likely drop to about 6
M in 2025. Current Deferred Revenue usually refers to revenue that has been collected but not yet earned, typically from prepaid service contracts or subscriptions. This amount is considered a liability until the service is provided or the subscription period ends. At this time, IRobot's Current Deferred Revenue is comparatively stable compared to the past year.
| 2018 | 5.76 Million |
| 2019 | 4.55 Million |
| 2020 | 10.4 Million |
| 2021 | 11.77 Million |
| 2022 | 13.21 Million |
| 2023 | 10.83 Million |
| 2024 | 11.28 Million |
| 2025 | 5.99 Million |
Buy low, sell high is a timeless strategy that resonates with iRobot's current stock situation. Despite a recent 2% pullback, the stock presents an appealing entry point, especially when the broader market is on the rise. With a price-to-earnings ratio of 8.75X, iRobot appears undervalued compared to its peers, offering potential for growth. The company's gross profit of $551.52 million underscores its ability to generate revenue, even as it navigates a challenging market environment. Investors should weigh the 46.46% probability of bankruptcy against the potential upside of 10.84, considering both the risks and rewards of this household durables player.
Another small drop for IRobot
iRobot's stock recently faced another setback, highlighted by a drop in its total risk alpha indicator to -0.71. This decline indicates the stock's performance isn't keeping pace with the broader market when adjusted for risk. While this may cause concern about short-term price gains, it also provides a chance for investors to watch for any strategic company actions that could turn things around. It's important to consider these indicators along with other factors before making investment choices. As of May 4th, iRobot's Risk Adjusted Performance is at (0.24), its market risk-adjusted performance is (0.64), and it has a Standard Deviation of 8.51.
Analyzing historical prices and volume momentum can help predict the stock's future price direction.Considering iRobot's recent performance, where it dipped over 2% despite broader market gains, potential investors should approach with a degree of caution. The stock's current trajectory suggests a possible upside price of 11.65, but with an overall analyst consensus of "Hold," it might not be the time to make bold moves. The highest estimated target price from analysts is 13.25, indicating some room for growth, yet the market's current valuation of iRobot seems to reflect a more tempered outlook. For those considering an entry point, it might be wise to keep an eye on market trends and company developments before making a decision. With a fiscal year ending in December, upcoming financial reports could provide further insights into the company's direction and potential..
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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