Returns Breakdown
| Return on Assets | 0.011 | |
| Return on Equity | 0.13 | |
| Return Capital | 0.0141 | |
| Return on Sales | 0.43 |
Estimating Fifth Third (USA Stocks:FITB) price for August 2023.
 | By Nico Santiago | Macroaxis Story |
Fifth Third Bancorp has a beta of 2.2045. To interpret what this beta signifies for Fifth Third, it's important to understand that as the market rises, the company is projected to outperform it. Conversely, if the market yields negative returns, Fifth Third is likely to underperform. The beta indicator assists investors in comprehending whether Fifth Third's movements align with the broader market, and how volatile (i.e., risky) it is relative to the market (i.e., selected benchmark). In simpler terms, if Fifth Third's deviation from the market is minimal, it doesn't contribute significantly to the portfolio's risk, but it also doesn't enhance the expected returns.
Continued study
Fifth Third Bancorp (FITB) is currently trading at an open price of $27.93, slightly below its 200-day moving average of $30.83. Despite this, the company's EPS estimates for the current and next year stand at $3.24 and $3.17 respectively, indicating a strong earnings potential. Furthermore, Wall Street's target price for FITB is $30.72, suggesting a potential upside of 4.66%. However, investors should be aware of the company's high PEG ratio of 3.69, which may indicate overvaluation. The company's payout ratio is 0.38, indicating a commitment to returning capital to shareholders. Despite a standard deviation of 2.4, indicating some volatility, the company's Treynor Ratio of 0.0685 suggests a reasonable risk-adjusted performance.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
Fifth Third Bancorp (NASDAQ: FITB), a prominent player in the Financial Services sector and the Banks-Regional industry, has been catching the eye of investors. As of July 19, 2023, the company's stock has been trading near its 52-week high of 37.1193, with a 50-day moving average of 25.9368 and a 200-day moving average of 30.8302. Analysts have a consensus 'Buy' rating on the stock, with 2 buys, 6 holds, and an overall estimated target price of 31.147. The company's EPS estimate for the next quarter stands at 0.91, and it has a PE ratio of 8.2609. With a short ratio of 1.65 and short percent of 0.0166, indicating a relatively low level of short interest, the stock seems poised for a potential breakout performance in August. However, investors should be aware of the possible downside price of 26.66. Fifth Third Bancorp's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are projected to see a significant increase, based on the reporting trends of the past few years. The EBITDA for the previous year stood at $3.53 billion. The Earnings Before Tax (EBT) for the current year is anticipated to grow to approximately $3.1 billion. However, the Net Income Per Employee is predicted to decrease to about $107,000. The objective of this article is to provide investors with our perspective on the future value of Fifth Third Bancorp. We will delve into the reasons why this could potentially be a game-changer for investors in Fifth Third Bancorp.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Fifth Third Bancorp. 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 Fifth Third
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Fifth Third's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Fifth Third's Liquidity
Fifth Third financial leverage refers to using borrowed capital as a funding source to finance Fifth Third Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Fifth Third 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 Fifth Third'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 Fifth Third'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 Fifth Third's total debt and its cash.
Fifth Third Gross Profit
Fifth Third Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Fifth Third 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 Fifth Third Gross Profit growth over the last 10 years. Please check Fifth Third's gross profit and other fundamental indicators for more details.
Detailed Perspective On Fifth Third
Fifth Third Bancorp currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.05. However, we advise investors to further question Fifth Third Bancorp 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 Fifth Third'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 Fifth Third'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.
Fifth Third Bancorp (NASDAQ: FITB), a key player in the Banks-Regional industry, is poised for a potential breakout performance in August. The company's strong fundamentals, including a net income of $2.45 billion and EBITDA of $4.51 billion, underscore its robust financial health.The firm's EPS estimate for the current year stands at $3.24, suggesting a positive earnings outlook. The company's shares have been trading between a 52-week low of $21.5663 and a 52-week high of $37.1193, with a current Wall Street target price of $30.72. The stock's 50-day moving average is $25.9368, while the 200-day moving average is $30.8302, indicating potential upside. Fifth Third Bancorp's total assets amount to a staggering $207.45 billion, with a manageable total debt of $18.55 billion. The company's Price to Earnings To Growth (PEG) ratio is 3.69X, and its Price to Book ratio is 1.54X, suggesting the stock may be undervalued. With a beta of 1.2, the stock has a moderate level of market risk. However, the company's risk-adjusted performance of 0.0534 and a Treynor Ratio of 0.0685 indicate a decent risk-reward trade-off. As we move into August, investors should keep a close eye on Fifth Third Bancorp. .
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