Home / Street Sector / Stocks Showing Promising Returns on Investment: Hovnanian Enterprises Inc. (NYSE:HOV), 3M Company (NYSE:MMM)

Stocks Showing Promising Returns on Investment: Hovnanian Enterprises Inc. (NYSE:HOV), 3M Company (NYSE:MMM)

Following previous ticker characteristics, Hovnanian Enterprises Inc. (NYSE:HOV) also run on active notice, stock price plummeted -1.19% after traded at $1.66 in most recent trading session. Hovnanian Enterprises, Inc. (HOV) reported results for its fiscal third quarter and nine months ended July 31, 2016. “During our third quarter we made progress towards our goal of improving our profitability by increasing our incomes 33%, growing Adjusted EBITDA by 75%, improving our Adjusted EBITDA coverage to 1.40x from 0.77x, and achieving a pretax profit,” stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer.

“Following paying off $320 million of debt since October 15, 2015, we ended the third quarter with $187.7 million of liquidity. Subsequent to the end of the third quarter, we issued $150 million of new debt to refinance debt maturing in 2017. Completing this debt transaction raises our liquidity and allows us to continue land investments that will help return us to higher levels of profitability in the future,” concluded Mr. Hovnanian.

HOV has price to current year EPS stands at -105.90%. Whereas the traders who further want to see about this, may be interested to see Price to next year’s EPS that would be 433.33%.

Taking notice on volatility measures, price volatility of stock was 6.33% for a week and 3.97% for a month. The price volatility’s Average True Range for 14 days was 0.08. On these bases, analysts would recommend this stock as an “Active Revolving Stocks.” The firm attains analyst recommendation of 3.50 out of 1-5 scale with week’s performance of -12.63%. HOV’s institutional ownership was registered as 30.70%, while insider ownership was 2.20%.

3M Company (NYSE:MMM) persists its position slightly strong in context of buying side, while shares price collapsed -1.14% during latest trading session.

Analysts Practices; to watch unbiased undervalue securities, there is need to see following technical rations. MMM holds price to earnings ratio of 22.44 that presents much better indication for a stock’s value than the market price alone. Based on historic views, the average P/E ratio in market fluctuates between 15 to 25, but alone low P/E ratio does not necessarily mean that a company is undervalue. With reference to all theories, earning yield also gives right direction to lure investment, as MMM has 2.52% dividend yield.

Narrow down focus to other ratios, the co has current ratio of 1.60 that indicates if MMM lies in 1.3% to 3% then it is acceptable for both active and passive investors, but sometimes its varies industry to industry. Generally, it indicates good short-term financial strength. Street is more conscious on this after SunEdison, Inc. case. To make strengthen these views, the active industry firm has Quick Ratio of 1.10, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.99, sometimes its remain same with long term debt to equity ratio.


About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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