Investors Set Sail on Valuation For US Ecology, Inc. (NasdaqGS:ECOL) as VC2 Hits 46

US Ecology, Inc. (NasdaqGS:ECOL) has a Value Composite score of 46. Developed by James O’Shaughnessy, the VC score uses six valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, price to sales and shareholder yield.  The VC score is displayed as a number between 1 and 100. In general, a firm with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued firm. Removing the sixth ratio (shareholder yield) we can view the Value Composite 1 score which is currently sitting at 50.

Investors might be gazing into the magic eight ball trying to project where the equity market will be heading over the next few months. Some analysts believe that the market is ready to take a bearish turn, but others believe that there is still room for stocks to shoot higher. When the markets do have a sell-off, investors may be tempted to sell winners before they give up previous profits. Sometimes this may be justified, but other times this type of panic selling can cause investors to just have to repurchase shares at a higher price after the recovery. Keeping tabs on the underlying firm fundamental data can aid provide the investor with a better idea of whether to hold on to a stock or let it go. 

When placing difficult earned money at exposure, investors will want to look at all the angles in order to make sure that no stone is left unturned when building the stock portfolio. With so many different stocks available to trade, investors may must determine a way to make the selection process manageable. Some investors may opt for to start with industry research first and eventually filter down to individual stock picks. Others may want to start at the individual stock level and go from there. Whatever the approach the investor chooses, placing in the time and effort might greatly aid the long-term performance of the stock portfolio.Shifting gears, we can see that US Ecology, Inc. (NasdaqGS:ECOL) has a Q.i. Value of 36.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to aid identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the firm tends to be.

US Ecology, Inc. (NasdaqGS:ECOL) has a current MF Rank of 5360. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. US Ecology, Inc. has a current ERP5 Rank of 6411. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When gazing at the ERP5 ranking, it is generally considered the lower the value, the better.

Valuation Scores

At the time of writing, US Ecology, Inc. (NasdaqGS:ECOL) has a Piotroski F-Score of 8. The F-Score may aid locate companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the firm financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

US Ecology, Inc. has an M-score Beneish of -2.456855. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in viewing the Gross Margin score on shares of US Ecology, Inc. (NasdaqGS:ECOL). The name currently has a score of 30.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Strictly technical traders typically don’t pay a whole lot of attention to fundamental factors such as value, competition, or firm management. Technical analysts want to determine trends based on indicators, charts, and prior price data. These types of traders are usually highly active and hold positions for short periods of time in order to capitalize on short-term price fluctuations. Active traders may be quick to unload a position if it does not pan out as expected. Technicians often pay a great deal of attention to support and resistance levels. These are levels where traders believe a specific stock will either see a bounce or a pullback. 

Watching some historical volatility numbers on shares of US Ecology, Inc. (NasdaqGS:ECOL), we can see that the 12 month volatility is currently 29.772500. The 6 month volatility is 25.665000, and the 3 month is spotted at 26.077700. Following volatility data can aid sum how much the stock price has fluctuated over the specified time timeframe. Although past volatility action may aid project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time timeframe. 

We can now take a quick peek at some historical stock price index data. US Ecology, Inc. (NasdaqGS:ECOL) currently has a 10 month price index of 1.15598. The price index is determined by dividing the current stock price by the stock price ten months ago. A ratio over one illustrates an increase in stock price over the timeframe. A ratio lower than one shows that the price has decreased over that time timeframe. Considering at some nonstandard time periods, the 12 month price index is 1.29560, the 24 month is 1.20320, and the 36 month is 2.08537. Narrowing in a bit closer, the 5 month price index is 0.84131, the 3 month is 0.89159, and the 1 month is currently 0.96836.

Once the individual investor has done all the fundamental diligence work and found a few stocks that they think are poised to be future winners, they may want to determine when to best get into the market. Many investors will turn towards technical analysis to accomplish this. Technical analysis can aid identify entry and exit points by studying price trends and movements over time. Some technical indicators are very complex and others are very simple. One goal of focusing on technical indicators is to aid make confusing price information clearer to interpret and understand. Many investors will find signals that they like to keep track of, but focusing on just one indicator may not provide the full picture of what is really going on. Many investors will combine technical indicators to aid round out the spectrum. Although technical analysis can be a very useful gizmo for the investor, it is necessary to remember that stock prices are inherently unpredictable. Even the most seasoned investors may have to adjust their charts occasionally if trades are not working out as planned.

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