Alger Small Price To Earning vs. Price To Sales
Taking into consideration Alger Small's profitability measurements, Alger Small Cap may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Alger Small's ability to earn profits and add value for shareholders.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in nation.
Please note, there is a significant difference between Alger Small's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alger Small is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alger Small's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
For Alger Small profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alger Small to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alger Small Cap utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alger Small's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alger Small Cap over time as well as its relative position and ranking within its peers.
Alger |
Alger Small Cap Price To Sales vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alger Small's current stock value. Our valuation model uses many indicators to compare Alger Small value to that of its competitors to determine the firm's financial worth. Alger Small Cap is the top fund in price to earning among similar funds. It also is the top fund in price to sales among similar funds fabricating about 0.10 of Price To Sales per Price To Earning. The ratio of Price To Earning to Price To Sales for Alger Small Cap is roughly 10.51 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alger Small's earnings, one of the primary drivers of an investment's value.Alger Price To Sales 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.
Alger Small |
| = | 39.00 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.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Alger Small |
| = | 3.71 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Alger Price To Sales Comparison
Alger Small is currently under evaluation in price to sales among similar funds.
Alger Small Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alger Small, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alger Small will eventually generate negative long term returns. The profitability progress is the general direction of Alger Small's change in net profit over the period of time. It can combine multiple indicators of Alger Small, 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.
The fund normally invests at least 80 percent of its net assets, plus any borrowings for investment purposes, in equity securities of companies that, at the time of purchase of the securities, have total market capitalization between the higher of 5 billion or the company in either the Russell 2000 Growth Index or the MSCI USA Small Cap Index with the highest capitalization, and the company in either index with the lowest capitalization, at any time during the most recent 12-month period as reported by either index. Alger Small is traded on NASDAQ Exchange in the United States.
Alger Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alger Small. 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 Alger Small 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 Alger Small's important profitability drivers and their relationship over time.
Use Alger Small 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 Alger Small 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 Alger Small will appreciate offsetting losses from the drop in the long position's value.Alger Small Pair Trading
Alger Small Cap Pair Trading Analysis
The ability to find closely correlated positions to Estee Lauder could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Estee Lauder 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 Estee Lauder - 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 Estee Lauder Companies to buy it.
The correlation of Estee Lauder 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 Estee Lauder moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Estee Lauder Companies 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 Estee Lauder 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 Alger Small position
In addition to having Alger Small 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 Recreation Thematic Idea Now
Recreation
Companies involved in production and services of recreational goods, foods, and accessories. The Recreation theme has 44 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 Recreation 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 mutual fund could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Tools for Alger Mutual Fund
When running Alger Small's price analysis, check to measure Alger Small's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alger Small is operating at the current time. Most of Alger Small's value examination focuses on studying past and present price action to predict the probability of Alger Small's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alger Small's price. Additionally, you may evaluate how the addition of Alger Small to your portfolios can decrease your overall portfolio volatility.
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