April 5, 2020

Notable Stock to Watch: Luckin Coffee Inc. (LK)

Luckin Coffee Inc. (LK) STOCK PRICE MOVEMENT:

VOLATILITY FACTOR: The stock showed 7.28% volatility in recent week and indicated 9.97% volatility in last month. ATR value of 3.52 measure stock volatility. The Average True Range is an exponential moving average (14-days) of the True Ranges.

Luckin Coffee Inc. (LK) received negative focus in THURSDAY (02/20/2020) trading session. The stock has performed -3.09% and it registered share value at $41.04 in recent trade transaction. At present, the stock price sited at -20.12% from the 52 week high and situated at 199.34% from 52 week low. 12794152 shares traded on hands while it’s an average volume stands with 15.68M shares.

PROFITABILITY RATIOS: Gross Margin is observed at 6.50% and Operating Margin is seen at -72.20%. Return on Assets (ROA) an indicator of how profitable a company is relative to its total assets, is -66.70%. Return on Equity (ROE) is -170.80% and Return on Investment (ROI) is 105.80%.

MARKET CAPITALIZATION AND VALAATION INDICATORS:

Luckin Coffee Inc. (LK) is China based company. Currently it has a market worth of $10.31B. Using market capitalization to show the size of a company is important because company size is a basic determinant of various characteristics in which investors are interested, including risk. Forward P/E is a measure of the price-to-earnings ratio using forecasted earnings for the P/E calculation for the next fiscal year. P/S ratio of 21.2 reflects the value placed on sales by the market. P/B ratio is 10.69. P/B is used to compare a stock’s market value to its book value.

PERFORMANCE WATCH:

Luckin Coffee Inc. (LK) has year to date performance of 4.27% and weekly performance of 5.91%. The stock has been moved at 118.30% over the last six months. The stock has performed -13.89% around last thirty days, and changed 45.74% over the last three months.

ANALYSTS VIEWS: The current analyst consensus rating clocked at 2.1 on company shares based on data provided from FINVIZ. (1.0 Strong Buy, 2.0 Buy, 3.0 Hold, 4.0 Sell, 5.0 Strong Sell). Analysts expected the stock to attain $49.35 price in coming 52-week period.

TECHNICAL OBSERVATION:

The Relative Strength Index (RSI) was developed by J. Welles Wilder, and it reading fluctuates between 0 and 100. The RSI is a momentum oscillator that measures the speed and change of stock price movements. Generally, the when RSI falls below 30 then stock considered to be oversold and overbought when it moves above 70. The normal reading of a stock will fall in the range of 30 to 70. RSI can be used to detect general trends as well as finding divergences and failure swings. Now LK has RSI reading of 56.44.