The Majestic Wine share price: should we expect more turbulence?

Majestic Wine (LON:WINE) has had a bumpy ride of late.

The group, which is engaged in the retailing of wines, beers and spirits, splits itself into four operating segments: Retail, Commercial, Naked Wines and Lay & Wheeler. When we analyse Majestic Wine from a factor perspective, we find that it has a Quality Rank of 79, a Momentum Rank of 64, but a Value Rank of only 40. This means it just about qualifies as a High Flyer.

What kind of High Flying stock is Majestic Wine?

High Flyers tend to be riskier and more volatile than the market average. Majestic's share price chart certainly suggests this is the case here.

We can find out more by applying Stockopedia’s RiskRatings system, which splits the stock market into five buckets according to stock price volatility. The five classifications (from least to most volatile) are:

• Conservative (10% of the market)
• Balanced (15% of the market)
• Adventurous (20% of the market)
• Speculative (25% of the market)
• Highly Speculative (30% of the market)

Majestic Wine is a speculative stock. This means that the group is in the more volatile half of the market in terms of stock price volatility, as might be expected of a High Flyer. Those looking to invest here should prepare themselves for a potentially bumpy ride. 

Find the rockstars of the stock market

High Flyers are great stocks to have in your portfolio if you think you need more momentum or quality - just look out for signs that momentum might be changing. If you want to see which other stocks qualify as High Flyers, you can find a comprehensive list on Stockopedia's StockRanks page.

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