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Is Bank of America Corporation (BAC) finally ready for a pull back ?

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Stock of Bank of America Corporation (BAC) opened at $26.62 and last traded at $26.75 x 28500. More than 9,415,252 shares exchanged hands compared to an average daily volume of 63,908,206 shares. At the current pps, the market capitalization stands at 279.227B.

Let’s take a look at how the stock has performed this year so far. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Bank of America Corporation (BAC) currently has a Beta value of 1.43 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Bank of America Corporation (BAC) current P/E ratio. Bank of America Corporation (BAC) currently has a PE ratio of 15.32. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Bank of America Corporation (BAC) beta and P/E ratio, the EPS cannot be ignored. Bank of America Corporation (BAC) EPS for the trailing twelve months was 1.75. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Bank of America Corporation (BAC) is estimated to release its next earnings report on 12 / 2017 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

Bank of America Corporation (BAC) has received an average target price from analysts of $28.27 amounting to a recommendation rating of Overweight. That comes from 33 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 14.61. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 12.31 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 25.00. That shift to 17.00 heading into next quarter.

 

 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Facebook, Inc. (FB) beta you simply cannot ignore

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. Stock of Facebook, Inc. (FB) opened at $177.30 and last traded at $178.41 x 200. More than 2,643,177 shares exchanged hands compared to an average daily volume of 16,216,728 shares. At the current pps, the market capitalization stands at 518.208B.

Let’s take a look at how the stock has performed this year so far. Facebook, Inc has moved -0.98% in the last 5 days or -0.68% in the last 1 month. In long-term, Facebook, Inc has changed 4.33% in 3 months and  47.94% in this year itself. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Facebook, Inc. (FB) currently has a Beta value of 1.21 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Facebook, Inc current P/E ratio. Facebook, Inc. (FB) currently has a PE ratio of 34.55. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Facebook, Inc beta and P/E ratio, the EPS cannot be ignored. Facebook, Inc EPS for the trailing twelve months was 5.16. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Facebook, Inc is estimated to release its next earnings report on 12 / 2017 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

Facebook, Inc. (FB) has received an average target price from analysts of $207.41 amounting to a recommendation rating of Buy. That comes from 46 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 30.44. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 26.84 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 37.00. That shift to 25.00 heading into next quarter.

 

 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Investors Should Consider Apple Inc. (AAPL) Beta Values Before Final Decision

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. Stock of Apple Inc. (AAPL) opened at $172.50 and last traded at $173.400 x 500. More than 5,069,667 shares exchanged hands compared to an average daily volume of 28,052,767 shares. At the current pps, the market capitalization stands at 886.952B.

Let’s take a look at how the stock has performed this year so far. Apple Inc has moved 2.03% in the last 5 days or 0.97% in the last 1 month. In long-term, Apple Inc has changed 9.15% in 3 months and  49.16% in this year itself. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Apple Inc. (AAPL) currently has a Beta value of 0.99 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Apple Inc current P/E ratio. Apple Inc. (AAPL) currently has a PE ratio of 18.76. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Apple Inc beta and P/E ratio, the EPS cannot be ignored. Apple Inc EPS for the trailing twelve months was 9.210. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Apple Inc is estimated to release its next earnings report on 9 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

Apple Inc. (AAPL) has received an average target price from analysts of $190.70 amounting to a recommendation rating of Overweight. That comes from 39 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 15.00. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 14.11 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 32.00. That shift to 31.00 heading into next quarter.

 

 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Business

PayPal Holdings, Inc. (PYPL) Could Be In For A Major Breakout

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. Stock of PayPal Holdings, Inc. (PYPL) opened at $74.08 and last traded at $75.39 x 200. More than 1,483,443 shares exchanged hands compared to an average daily volume of 9,389,196 shares. At the current pps, the market capitalization stands at 89.771B.

Let’s take a look at how the stock has performed this year so far. PayPal Holdings, Inc has moved 1.36% in the last 5 days or -3.87% in the last 1 month. In long-term, PayPal Holdings, Inc has changed 20.00% in 3 months and  88.90% in this year itself. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. PayPal Holdings, Inc. (PYPL) currently has a Beta value of 1.21 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at PayPal Holdings, Inc current P/E ratio. PayPal Holdings, Inc. (PYPL) currently has a PE ratio of 58.35. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at PayPal Holdings, Inc beta and P/E ratio, the EPS cannot be ignored. PayPal Holdings, Inc EPS for the trailing twelve months was 1.28. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. PayPal Holdings, Inc is estimated to release its next earnings report on 12 / 2017 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

PayPal Holdings, Inc. (PYPL) has received an average target price from analysts of $79.77 amounting to a recommendation rating of Overweight. That comes from 47 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 38.99. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 32.26 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 44.00. That shift to 36.00 heading into next quarter.

 

 

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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