Investors should be cautious about Nordic American Tankers (NYSE:NAT) as a potential decline is anticipated in December, especially given its recent quarterly revenue growth of -0.7% and a maximum drawdown of **10.02%**. With a profit margin of just **0.0444** and a relatively high short ratio of **5.63**, the stock's risk profile warrants careful consideration before making any new commitments. Monitoring key indicators like the industry’s overall performance and NAT’s beta of -0.46 can help gauge whether the upcoming downturn might present a buying opportunity or signal to stay on the sidelines.
Main Points
Nordic American scores just 14 out of 100 for overall performance. Its Beta of 0.31 indicates it tends to move less than the broader market, offering some cushion during downturns. When the market rises, Nordic American's gains are likely to lag; during declines, its losses should be smaller. For a clearer picture, check its potential upside and examine the link between kurtosis and the day’s typical price—these can hint at whether the current price trends might reverse. Overall, Nordic American's low beta and modest score suggest it’s a more defensive pick, but always consider these indicators alongside broader market conditions before making a move.
What is the right price you would pay to acquire a share of Nordic American? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Nordic American Tankers this year
Annual and quarterly reports issued by Nordic American Tankers are formal
financial statements that are published yearly and quarterly and sent to Nordic stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Nordic American often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Nordic American Gross Profit
Nordic American Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Nordic American 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 Nordic American Gross Profit growth over the last 10 years. Please check Nordic American's
gross profit and other
fundamental indicators for more details.
Is Nordic a risky opportunity?
Let's check the volatility. Nordic is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Nordic (USA Stocks:NAT) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Nordic American stock makes you a part-owner of that company.
Nordic American Tankers Current Consensus
Here is the newest trade recommendation based on an ongoing consensus estimate among financial analysis covering Nordic American Tankers. The Nordic consensus assessment is calculated by taking the average estimates from all of the analysts covering Nordic American.
| Strong Buy | 1 | 33.33 |
| Buy | 0 | 0.0 |
| Hold | 2 | 66.67 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
As Warren Buffett once said, the stock market is a device for transferring money from the impatient to the patient. Nordic American Tankers (NYSE:NAT) appears poised for a potential decline in December, with recent data showing a slight negative momentum indicator of -0.05 and a price close to its 50-day moving average of 3.49. Despite a healthy net asset value of $817.59 million and a current ratio of 1.53X, the company’s revenue growth has slowed by 0.7%, and its downside deviation stands at 1.82, signaling increased risk. With a market valuation of approximately $1.14 billion and a relatively low short interest at 5.63X, investors should watch for further declines and consider whether the stock’s upside potential of 3.68 outweighs its maximum drawdown risk of 10.02. Given the modest dividend yield of 0.07% and a debt-to-equity ratio of just 0.72%, the company maintains a stable financial footing, but near-term volatility warrants caution.
Analysis of Nordic American Tankers
Nordic American Tankers recently experienced a downside variance of 3.32, reflecting moderate recent price swings to the downside. While there’s been some downward movement, volatility remains within reasonable bounds, suggesting no immediate red flags. Keep an eye on this variance—it can hint at shifts in momentum but doesn’t signal an imminent crash. Currently, the stock’s variance points to a cautious sense of stability amid fluctuating market conditions. As of November 28th, Nordic American’s mean deviation stands at 1.66, with a risk-adjusted performance of 0.1374 and a downside deviation of 1.82. When combined with fundamental indicators, this technical analysis helps identify key drivers and their interplay, offering a clearer picture of the stock’s current technical landscape.
Our Final Perspective on Nordic American
Whereas many other companies in the marine shipping industry are either recovering or due for a correction, Nordic American may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 90 days horizon, it may be a good time to acquire new shares of Nordic or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Nordic American.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Raphi Shpitalnik do not own shares of Nordic American Tankers. Please refer to our
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