December 14, 2023
Top 10 Stock Hancock Sell Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Hancock Sell

360 METRICS	December 14, 2023
VALUE
VALUE	28
GROWTH
GROWTH	25
SAFETY
SAFETY	63
SENTIMENT
SENTIMENT	22
360° VIEW
360° VIEW	20

ANALYSIS: With an Obermatt 360° View of 20 (better than 20% compared with alternatives), overall professional sentiment and financial characteristics for the stock Hancock are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with three out of four metrics below average for Hancock. The only rank that is above average is the consolidated Safety Rank at 63, which means that the company has a financing structure that is safer than those of 63% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the Value, Growth and Sentiment Ranks are all below average. The consolidated Value Rank has a less desirable rank of 28, which means that the share price of Hancock is on the high side compared with typical size in indicators such as revenues, profits, and invested capital. The consolidated Growth Rank also has a low rank of 25, which implies that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. Finally, the consolidated Sentiment Rank is also low at a rank of 22, which means that professional investors are more pessimistic about the stock than for 78% of alternative investment opportunities. While Safety is strong, it’s not the most critical indicator, so we suggest proceeding with caution if you are considering this stock. ...read more

RECOMMENDATION: With a consolidated 360° View of 20, Hancock is worse than 80% of all alternative stock investment opportunities based on the Obermatt Method. This means that Hancock shares are on the riskier side for investors. As only the financing structure, namely the Safety Rank, is on the safer side and all other consolidated Obermatt Ranks are below-average, this is a riskier stock investment proposition. This is especially the case, since professional investor sentiment, the consolidated Obermatt Sentiment Rank, is also low at 22. The negative market view on Hancock may be the high stock price (low value) or the low level of growth. This is a problem. As the Safety Rank is the least significant of the four consolidated Obermatt Ranks, we cannot identify enough positive facts that are visible today to make a case for this stock investment. The company may have a strong future which would justify the high stock price, but this is not visible from investor behavior today. As market sentiment is critical, you should be careful with paying more than market-average for this stock, and conduct further research into the company's future growth potential. Prudent investors may only want to invest a smaller portion of their wealth in such situations. Young investors can carry more risk but should still thrive for sufficient diversification. ...read more

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Sentiment Strategy: Professional Market Sentiment for Hancock negative

SENTIMENT METRICS	December 14, 2023
ANALYST OPINION
ANALYST OPINION	43
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	59
MARKET PULSE
MARKET PULSE	5
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	22

ANALYSIS: With an Obermatt Sentiment Rank of 22 (better than 22% compared with alternatives), overall professional sentiment and engagement for the stock Hancock is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Hancock. Analyst Opinions are at a rank of 43 (worse than 57% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 50, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in Hancock. More encouragingly, the Professional Investors rank is 59, which means that professional investors hold more stock in this company than in 59% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 5, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 95% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 22 (less encouraging than 78% compared with investment alternatives), Hancock has a reputation among professional investors that is far below that of its competitors. The sentiment signals are mixed for Hancock. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: Hancock Stock Price Value below-average critical

VALUE METRICS	December 14, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	31
DIVIDEND YIELD
DIVIDEND YIELD	28
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	28

ANALYSIS: With an Obermatt Value Rank of 28 (worse than 72% compared with alternatives), Hancock shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Hancock. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value concerning Hancock's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 58% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 28 (dividends are expected to be higher than for 28% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 69% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Hancock to 31. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 28, is a hold recommendation based on Hancock's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. ...read more

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Growth Strategy: Hancock Growth Momentum low

GROWTH METRICS	December 14, 2023
REVENUE GROWTH
REVENUE GROWTH	40
PROFIT GROWTH
PROFIT GROWTH	39
CAPITAL GROWTH
CAPITAL GROWTH	29
STOCK RETURNS
STOCK RETURNS	43
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	25

ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), Hancock shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Hancock. Sales Growth has a rank of 40, which means that currently professionals expect the company to grow less than 60% of its competitors. The same is valid for Profit Growth, with a rank of 39, and Capital Growth with 29. In addition, Stock Returns have a below market rank of 43, which means that the stock returns have recently been below 57% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. ...read more

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Safety Strategy: Hancock Debt Financing Safety above-average

SAFETY METRICS	December 14, 2023
LEVERAGE
LEVERAGE	70
REFINANCING
REFINANCING	28
LIQUIDITY
LIQUIDITY	72
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	63

ANALYSIS: With an Obermatt Safety Rank of 63 (better than 63% compared with alternatives), the company Hancock has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Hancock is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Hancock. Leverage is at a rank of 70, meaning the company has a below-average debt-to-equity ratio. It has less debt than 70% of its competitors. Liquidity is also good at a rank of 72, meaning the company generates more profit to service its debt than 72% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 28, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 72% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 63 (better than 63% compared with alternatives), Hancock has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Hancock. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: Hancock Lowest Financial Performance

COMBINED PERFORMANCE	December 14, 2023
VALUE
VALUE	28
GROWTH
GROWTH	25
SAFETY
SAFETY	72
COMBINED
COMBINED	20

ANALYSIS: With an Obermatt Combined Rank of 20 (worse than 80% compared with investment alternatives), Hancock (Regional Banks, USA) shares have lower financial characteristics compared with similar stocks. Shares of Hancock are low in value (priced high) with a consolidated Value Rank of 28 (worse than 72% of alternatives) and show below-average growth (Growth Rank of 25) but are safely financed (Safety Rank of 63), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 20, is a sell recommendation based on Hancock's financial characteristics. As the company Hancock's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 28) and low growth (Obermatt Growth Rank of 25), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 63) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. ...read more

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