Consumer Discretionary Price To Earning vs. Ten Year Return
| XLY Etf | USD 228.91 0.58 0.25% |
For Consumer Discretionary profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Consumer Discretionary to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Consumer Discretionary Select utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Consumer Discretionary's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Consumer Discretionary Select over time as well as its relative position and ranking within its peers.
Consumer |
The market value of Consumer Discretionary is measured differently than its book value, which is the value of Consumer that is recorded on the company's balance sheet. Investors also form their own opinion of Consumer Discretionary's value that differs from its market value or its book value, called intrinsic value, which is Consumer Discretionary's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Consumer Discretionary's market value can be influenced by many factors that don't directly affect Consumer Discretionary's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Consumer Discretionary's value and its price as these two are different measures arrived at by different means. Investors typically determine if Consumer Discretionary is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Consumer Discretionary'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.
Consumer Discretionary Ten Year Return vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Consumer Discretionary's current stock value. Our valuation model uses many indicators to compare Consumer Discretionary value to that of its competitors to determine the firm's financial worth. Consumer Discretionary Select is rated first in price to earning as compared to similar ETFs. It is rated first in ten year return as compared to similar ETFs reporting about 6.23 of Ten Year Return per Price To Earning. 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 Consumer Discretionary's earnings, one of the primary drivers of an investment's value.Consumer Ten Year Return 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.
Consumer Discretionary |
| = | 2.20 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.
Ten Year Return shows the total annualized return generated from holding a fund for the last 10 years and represents fund's capital appreciation, including dividends losses and capital gains distributions. This return indicator is considered by many investors to be the ultimate measures of fund performance and can reflect the overall performance of the market or market segment it invests in.
Consumer Discretionary |
| = | 13.70 % |
Although Ten Year Fund Return indicator can give a sense of overall fund long-term potential, it is recommended to compare funds performances against other similar funds or market benchmarks for the same 10-year interval.
Consumer Ten Year Return Comparison
Consumer Discretionary is currently under evaluation in ten year return as compared to similar ETFs.
Consumer Discretionary Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Consumer Discretionary, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Consumer Discretionary will eventually generate negative long term returns. The profitability progress is the general direction of Consumer Discretionary's change in net profit over the period of time. It can combine multiple indicators of Consumer Discretionary, 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 generally invests substantially all, but at least 95, of its total assets in the securities comprising the index. SP 500 is traded on NYSEARCA Exchange in the United States.
Consumer Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Consumer Discretionary. 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 Consumer Discretionary 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 Consumer Discretionary's important profitability drivers and their relationship over time.
Use Consumer Discretionary 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 Consumer Discretionary 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 Consumer Discretionary will appreciate offsetting losses from the drop in the long position's value.Consumer Discretionary Pair Trading
Consumer Discretionary Select Pair Trading Analysis
The ability to find closely correlated positions to Consumer Discretionary could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Consumer Discretionary 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 Consumer Discretionary - 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 Consumer Discretionary Select to buy it.
The correlation of Consumer Discretionary 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 Consumer Discretionary moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Consumer Discretionary 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 Consumer Discretionary 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 Consumer Discretionary position
In addition to having Consumer Discretionary 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 Money Funds Thematic Idea Now
Money Funds
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 32 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 Money Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Your Current Watchlist. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
To fully project Consumer Discretionary's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Consumer Discretionary at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Consumer Discretionary's income statement, its balance sheet, and the statement of cash flows.