Local Bounti Corp, trading in the Farm Products sector, might just be the strategic investment opportunity you've been searching for, especially with its intriguing Jensen Alpha of 0.32, suggesting potential for returns above the market average. Despite a recent price percent change of -0.95, the stock's current quote at 2.08 could present a compelling entry point for those looking to capitalize on its growth potential.
Main Ideas
The asset utilization ratio measures how effectively a company uses its assets to generate revenue. Local Bounti Corp has a ratio of 7.22%, meaning it earns about $0.0722 for every dollar of assets. If this ratio increases, it indicates that Local Bounti is becoming more efficient at using its assets in daily operations.
The successful prediction of Local Bounti
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 Local Bounti Corp, 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 Local Bounti based on Local Bounti hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Local Bounti's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Local Bounti's related companies.
Use Technical Analysis to project Local expected Price
Local Bounti 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 Local Bounti technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Local Bounti 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...Local Bounti Gross Profit
Local Bounti Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Local Bounti 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 Local Bounti Gross Profit growth over the last 10 years. Please check Local Bounti's
gross profit and other
fundamental indicators for more details.
Is Local Bounti valued adequately by the market?
The company reported the previous year's revenue of 27.56
M. Net Loss for the year was (124.02
M) with profit before overhead, payroll, taxes, and interest of 4.23
M.
Total Revenue Breakdown
Local Bounti Total Revenue yearly trend continues to be quite stable with very little volatility. Total Revenue may rise above about 33.3
M this year. Total Revenue usually refers to the total amount of income generated by the sale of goods or services related to the company's primary operations. At this time, Local Bounti's Total Revenue is quite stable compared to the past year.
| 2010 | 82,000 |
| 2021 | 638,000 |
| 2022 | 19.47 Million |
| 2023 | 27.56 Million |
| 2024 | 31.69 Million |
| 2025 | 33.28 Million |
Warren Buffett once said, "Price is what you pay. Value is what you get." This wisdom is particularly relevant when considering Local Bounti Corp as a potential investment. With a market capitalization of $18.18 million and a price-to-sales ratio of 0.52X, the stock may appear undervalued in the Farm Products industry. However, investors should weigh this against the company's significant challenges, such as a high probability of bankruptcy at 96% and a total debt of $327.42 million. While the potential upside is pegged at 5.8, the substantial risks involved demand careful consideration before making a strategic investment decision.
Local Bounti has a good chance to finish above $2.12 in 2 months
Local Bounti Corp's stock is showing encouraging signs, with a market risk-adjusted performance rating of 0.74. This suggests a good balance between risk and return, indicating effective risk management and potential for future gains. Consequently, there's a fair chance the stock could exceed $2.12 within the next two months. This positive outlook is rooted in confidence in the company's strategies and market stance, making it an attractive option for growth-focused investors. As of March 28th, Local Bounti's downside deviation stands at 3.29, with a risk-adjusted performance of 0.0796 and a mean deviation of 2.71. It's advisable to examine the Treynor ratio and the relationship between standard deviation and downside variance to determine if the current price of $2.08 accurately reflects the market's view.
Additionally, consider the total risk alpha, now at 0.4247, to assess the company's future sustainability.As we look ahead to April, Local Bounti Corp's stock presents an intriguing opportunity for investors willing to embrace some risk. With an analyst overall consensus of "Strong Buy" and a possible upside price of 5.36, there's potential for significant gains. However, it's important to weigh this against the possible downside price of 0.0208. The stock's valuation real value stands at 3.57, suggesting that the market might be undervaluing its potential. Investors should keep an eye on market trends and company developments, as these could influence the stock's trajectory. Balancing these factors, Local Bounti could be a compelling choice for those looking to diversify their portfolio with a stock that has room to grow..
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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