Time to book profit in science games stock?

According to the new strategic plan, Science games (NASDAQ: SGMS) is targeting divestitures in the lottery and sports betting activities to reduce its debt and improve its margins. However, the company has $ 9 billion in long-term debt obligations on the balance sheet, which is more than the current market capitalization. Thus, Trefis believes that the SGMS share has little upside potential. In recent filings, the company highlighted the strong recovery in its gaming segment after the lull seen in recent quarters. In addition, the digital segment continued to perform better thanks to the rise in sports betting and the growing popularity of its major customers FanDuel and Wynn Resorts.

WYNN
. As the company’s revenue in Q2 2021 has returned to pre-pandemic levels seen in Q2 2019, high interest charges are weighing on operating cash flow.

According to machine learning engine Trefis, which identifies trends in historical data on a company’s stock price, Scientific Games stocks will likely win. 3.2% over the next month (twenty-one trading days) given the –0.3% decline over the past week (five trading days).

But how would those numbers change if you wanted to hold Scientific Games shares for a longer or shorter period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test the chances of a rise in science games stocks after a fall. You can test the chances of recovery over different time intervals of a quarter, a month, or even a single day!

MACHINE LEARNING MOTOR – try it yourself:

IF SGMS shares have moved by -5% over five trading days, THEN over the next twenty-one trading days, the SGMS share evolves medium 6.6%, with a 56.2% probability of a positive return over this period.

In addition, given a -5% movement for the stock over 5 trading days, it has historically experienced a excess return up 5.3% to the S & P500 over the next 21 trading days, with a 53.7% percent chance of a positive excess return.

Some fun scenarios, FAQs and explanation of science game stock movements:

Question 1: Is the average Scientific Games stock return higher after a decline?

Responnse: Consider two situations,

Consider two situations,

Case 1: Scientific Games stock drops -5% or more in a week

Case 2: Scientific Games stock increases by 5% or more in a week

Is the average Scientific Games share return higher in the next month after Case 1 or Case 2?

SGMS stock fares better after case 1, with an average return of 6.6% during the following month (21 trading days) in case 1 (where the stock has just suffered a loss of 5% during the previous week), against an average return 3.9% for case 2.

In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days in case 1, and an average return of only 0.5% for case 2, as detailed in our dashboard. which details the average return of the S&P 500 after a fall or rise.

Try the Trefis machine learning engine above to see for yourself how Scientific Games stocks are likely to behave after a specific gain or loss over a period of time.

Question 2: Does patience pay?

Responnse: If you buy and hold shares in Scientific Games, it is expected that over time short-term fluctuations will cancel each other out and the long-term positive trend will be in your favor – at least if the company is. otherwise solid.

Overall, according to data and calculations from the machine learning engine Trefis, patience absolutely pays for most actions!

For SGMS stock, the returns over the next N days after a -5% change over the last five trading days are detailed in the table below, along with the returns of the S & P500:

You can try the engine out to see what this table looks like for science games after a larger loss in the past week, month, or quarter.

Question 3: What about the average return after a rise if you wait a while?

Responnse:

The average return after a rise is naturally lower than that after a fall, as detailed in the previous question. Interestingly, however, if a stock has won in the last few days, you’d better avoid short-term bets for most stocks – although SGMS stock appears to be an exception to this general observation.

The returns of SGMS over the next N days after a 5% change in the last five trading days are detailed in the table below, along with the returns of the S & P500:

It is powerful enough to test the trend of Scientific Games stocks yourself by changing the entries in the charts above.

Do classic casino stocks offer better payouts? Comparison of Las Vegas Sands stocks with peers summarizes how LVS stacks up against its peers on the metrics that matter. You can find other useful comparisons at Peer comparisons.

See everything Featured analyzes from Trefis and To download Trefis data here