Returns Breakdown
| Return on Assets | 0.0128 | |
| Return on Equity | 0.12 | |
| Return Capital | 0.0191 | |
| Return on Sales | 0.4 |
Are Regions (USA Stocks:RF) stockholders starting to hold back?
 | By Ellen Johnson | Macroaxis Story |
Regions Financial is deemed to be fairly valued at $20.13 per share, with moderate future projections. Notably, over 78.0% of Regions Financial's shares are owned by institutional investors. This institutional ownership of Regions Financial encompasses the portion of the company's equity held by mutual funds, pension funds, insurance companies, investment firms, foundations, and other large entities that manage funds on behalf of others. For a comprehensive analysis of Regions, including its current ownership diagnostics, please refer to our latest report.
Detailed assessment
Regions Financial (NYSE: RF) has been showing promising signs of a bullish breakout, with several key indicators pointing towards a positive investment outlook. The company's EPS estimate for the next year stands at 2.21, suggesting a potential for strong earnings growth. The Mean Deviation of 1.88 indicates a relatively stable stock price, further reinforcing the potential for a bullish trend. The Total Risk Alpha of 0.0066 also suggests a low-risk investment opportunity. However, investors should also consider the company's 200-day moving average of 20.28, which is slightly below the current stock price of 20.35. While this could suggest a potential for a short-term pullback, the overall long-term outlook for Regions Financial remains positive. As always, investors are advised to conduct their own thorough research before making any investment decisions.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Vlad Skutelnik
Regions Financial (NYSE: RF), a key player in the Financial Services sector and Banks-Regional industry, has been catching the eye of investors. With a market valuation of $20.35 billion, the company has demonstrated robust financial health. The firm's EPS estimates for the current year and the next stand at 2.33 and 2.21 respectively, indicating a strong earnings outlook. The company's PEG ratio of 0.5376 and PE ratio of 8.5192 further underscore its potential for growth. Moreover, with a 52-week high of 23.8272, the stock has significant upside potential from its current day typical price of 20.2. However, investors should also consider the possible downside price of 18.92. The company's payout ratio of 0.3292 and daily balance of power at 0.6 suggest a healthy balance between its earnings and dividend payments. With 16 analysts providing estimates, 2 recommending buys, and 10 holding their positions, the stock's future seems promising. The question remains: Is Regions Financial poised for a bullish breakout? The Average Equity of Regions Financial is anticipated to significantly increase in the forthcoming years. The value of Average Equity was reported at $16.15 billion last year. The current Enterprise Value is projected to rise to approximately $9.8 billion, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to decrease to around $3 billion. The primary purpose of this brief analysis is to provide our forecast of Regions Financial for its shareholders. We aim to predict the outlook of Regions Financial for August.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Regions Financial. Your research has to be compared to or analyzed against Regions Financial's peers to derive any actionable benefits. When done correctly, Regions Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Regions Financial.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Regions Financial. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Regions Financial
How important is Regions Financial's Liquidity
Regions Financial financial leverage refers to using borrowed capital as a funding source to finance Regions Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Regions Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Regions Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Regions Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Regions Financial's total debt and its cash.
Regions Financial Gross Profit
Regions Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Regions Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Regions Financial Gross Profit growth over the last 10 years. Please check Regions Financial's gross profit and other fundamental indicators for more details.
What is driving Regions Financial Investor Appetite?
Regions Financial currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.06. However, we advise investors to further question Regions Financial expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Regions Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Regions Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Regions Financial (NYSE: RF), a prominent player in the domestic primary banking sector, has been catching the eye of investors with its solid financial standing and positive market indicators. As of now, the company boasts a net asset of $155.22 billion and a healthy net income of $2.25 billion, which is reflected in its impressive EPS of 2.35X for the current year.The bank's operating margin stands at 0.45%, and it has a payout ratio of 32.92%, indicating a balanced approach to profit distribution. The stock's recent performance shows promise for potential investors. The 50-day moving average is 17.74, while the 200-day moving average is slightly higher at 20.28, suggesting a possible bullish breakout. The Wall Street target price for RF is set at $21.08, which is higher than the current typical day price of $20.2. Investors should also take note of the company's low PEG ratio of 0.5376, which indicates that the stock may be undervalued given its earnings growth. Moreover, the company's risk-adjusted performance is positive at 0.056, hinting at a potential upside. However, the company is not without its risks. It has a total debt of $2.28 billion, and the probability of bankruptcy stands at 13.01%. Despite these risks, with the company's current valuation at $21.88 billion and a PE ratio of 8.5192, Regions Financial could be poised for a bullish breakout. .
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