The famous brand!
The field of education has indeed been revolutionized by Chegg Inc. Having been in the market for the past 15 years and based out of Santa Clara, California, the entire corporation deals with online tutorials on different concepts, textbook rentals, digital e-books of costly books and many such student-centric services. Along with helping the students, it is also fostering the talent of the teachers as they can solve the problems beyond their classroom students and also offers a good amount of side income to the working students. With all of these driving factors, the stock performance of NYSE: CHGG at https://www.webull.com/quote/nyse-chgg is showing the results accordingly and this article elucidates further on this concept.
The main points for analysis
As per the market closing on 18 August 2020, the following are the major points to be considered for evaluating the overall performance:
- Current NAV of USD 78.22 when compared to the previous day closing at USD 79.71 and the subsequent opening at USD 81.77
- A negative day on day growth at USD 1.49 and -1.87% when the same is expressed in the form of a percentage
- A market cap of USD 9.724 billion
- The 1-year estimate of NAV at USD 94.50
- The day range of USD 76.46-82.07
- The 52-week range of USD 25.89-89.82
- Net income of USD 1618k as of YTD of NYSE: CHGG
What can you learn from these?
Based on these pointers and perfect summation from the full-time analysts, the following are the major learnings that you can take from the stock performance of Chegg:
- The positive impacts have been shown by the analysts as the growth of 66.63% in the earnings by the year-end and the net growth to be in the positive single-digit percentage. These figures show that the investors would get a little above their estimated returns and not have a loss on the base investment made in Chegg stocks.
- However, the major concerns lie in the short term returns, where the price of the shares has been very volatile for the past quarter and the payment methods have also shown issues on the website. Thus, the short term dips in the revenue would continue for more weeks and a negative day on day growth is estimated at least for another 1-2 months.
- As of YTD, the cash flow has been 94.37% higher than the other existing stocks and it is keeping up the hopes of the positive earnings percentage that has been mentioned in the first point.
To conclude, it can be said that the budding investors should not choose Chegg at this point due to the volatility and rather go for other similar low NAV stocks. Coming to the existing investors, they can choose to retain the existing ones owing to the final positive growth and rather not go for buying fresh stocks at least till this year-end. You can do free stock trading at online trading platforms.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.
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