American Equity Price To Earning vs. Net Income
| AELDelisted Stock | USD 53.75 0.10 0.19% |
For American Equity profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Equity to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Equity Investment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Equity's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Equity Investment over time as well as its relative position and ranking within its peers.
American |
American Equity Inve Net Income vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Equity's current stock value. Our valuation model uses many indicators to compare American Equity value to that of its competitors to determine the firm's financial worth. American Equity Investment is rated below average in price to earning category among its peers. It is rated third in net income category among its peers making up about 80,049,430 of Net Income per Price To Earning. Comparative valuation analysis is a catch-all technique that is used if you cannot value American Equity by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.American Net Income vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
American Equity |
| = | 2.63 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
American Equity |
| = | 210.53 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
American Net Income Comparison
American Equity is currently under evaluation in net income category among its peers.
American Equity Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Equity, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Equity will eventually generate negative long term returns. The profitability progress is the general direction of American Equity's change in net profit over the period of time. It can combine multiple indicators of American Equity, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products in the United States. American Equity Investment Life Holding Company was incorporated in 1995 and is headquartered in West Des Moines, Iowa. American Equity operates under InsuranceLife classification in the United States and is traded on New York Stock Exchange. It employs 800 people.
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Equity. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Equity position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Equity's important profitability drivers and their relationship over time.
Use American Equity in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Equity position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Equity will appreciate offsetting losses from the drop in the long position's value.American Equity Pair Trading
American Equity Investment Pair Trading Analysis
The ability to find closely correlated positions to American Equity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Equity when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Equity - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Equity Investment to buy it.
The correlation of American Equity is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Equity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Equity Inve moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Equity can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your American Equity position
In addition to having American Equity in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Industrials ETFs Thematic Idea Now
Industrials ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Industrials ETFs theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Industrials ETFs Theme or any other thematic opportunities.
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Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Consideration for investing in American Stock
If you are still planning to invest in American Equity Inve check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the American Equity's history and understand the potential risks before investing.
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