Investors seeking an under-the-radar opportunity may want to take a closer look at Fifth Third Bancorp. The stock has been quietly building momentum, despite a daily balance of power reading of
-1.06, indicating a stronger selling pressure. However, with a mean deviation of
1.42 and a standard deviation of
1.74, the risk is relatively low compared to the potential reward. Additionally, the accumulation distribution level is at
132K, suggesting that there is still plenty of room for growth as more investors become aware of this opportunity. While the stock's Jensen Alpha of -0.09 suggests a slight loss, the total risk alpha of
0.1113 implies that the stock could potentially outperform the market. Investors should keep an eye on Fifth Third Bancorp as we move into November, as there may be untapped potential in this stock.
Continued study
The asset utilization indicator is a measure of the revenue earned for every dollar of assets a company currently possesses. Fifth Third Bancorp has an asset utilization ratio of 4.0 percent, indicating that the company generates $0.04 for each dollar of assets. An increase in asset utilization suggests that Fifth Third Bancorp is becoming more efficient with each dollar of assets it employs in daily operations.
The company has a Profit Margin (PM) of 0.31%, which means that even a minor decline in its revenue could erase profits, leading to a net loss. This is significantly below average. Similarly, the company's Operating Margin (OM) is 0.4%, suggesting that for every 100 dollars of sales, it generates a net operating income of $0.40.
The successful prediction of Fifth Third
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Fifth Third Bancorp, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Fifth Third based on Fifth Third hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Fifth Third's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Fifth Third's related companies.
Use Technical Analysis to project Fifth expected Price
Fifth Third technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Fifth Third technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Fifth Third trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...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 price slip over the last few months could raise concerns from investors as the firm is trading at a share price of
24.64 on
5,277,115 in volume. The company directors and management were not very successful in positioning the firm resources to exploit
market volatility in
September. However, diversifying your holdings with Fifth Third Bancorp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.67. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2020 | 2021 | 2022 | 2023 (projected) |
Net Income | 1.43 B | 2.77 B | 2.45 B | 2.43 B | Gross Profit | 6.51 B | 8.27 B | 7.81 B | 8.04 B |
Revenues Breakdown
Fifth Third Revenues is increasing over the years with slightly volatile fluctuation. Ongoing Revenues is projected to grow to about 8
B this year. Revenues usually refers to the amount of Revenue recognised from goods sold; services rendered; insurance premiums; or other activities that constitute an earning process. Interest income for financial institutions is reported net of interest expense and provision for credit losses. Where this item is not contained on the company consolidated financial statements and cannot otherwise be imputed the value of 0 is used. At present, Fifth Third's Revenues is projected to increase significantly based on the last few years of reporting.
| 2016 | 5.97 Billion |
| 2017 | 6.76 Billion |
| 2018 | 6.72 Billion |
| 2019 | 7.86 Billion |
| 2020 | 6.51 Billion |
| 2021 | 8.27 Billion |
| 2022 | 7.81 Billion |
| 2023 | 8.04 Billion |
Fifth Third Bancorp, a key player in the Banks - Regional industry, has been attracting the attention of investors as we move into November. With a market capitalization of
$16.78B and a healthy operating margin of 0.40%, the company has demonstrated a strong financial position. Despite a high probability of bankruptcy at 45.75%, the company's robust retained earnings of
$21.69B and total assets of $207.45B suggest a potential for resilience. The company's price to earnings ratio stands at 11.22X, indicating that the stock may be undervalued compared to its earnings. Moreover, the price to book value of 1.54X further underscores this potential undervaluation. The company's earnings per share is at a healthy 3.50X, and with a target price of $31.1, there is a potential upside of 2.52. However, investors should also consider the company's high total debt of $18.55B and the fact that 79.80% of the shares are owned by institutions. The company's beta of 1.25 suggests it is more volatile than the market, which may increase investment risk. Despite these concerns, the company's strong cash flow from operations ($6.43B) and cash and equivalents ($7.82B) provide some financial stability. Therefore, while there are risks, there may be untapped potential in Fifth Third Bancorp stock for November.
Will Fifth investors exit after the slip?
The recent skewness metric for Fifth Third Bancorp stock has declined to -0.19, indicating a potential risk of downside. This negative skewness suggests that the returns are skewed to the left of the mean, implying a higher likelihood of negative returns. Given this situation, investors may be considering an exit strategy. However, it's important to take into account other market factors and the company's
fundamentals before making any hasty decisions. Fifth Third Bancorp displays very low volatility, with a skewness of -0.19 and a kurtosis of -0.64. However, we recommend investors to further examine Fifth Third Bancorp's technical indicators to ensure all market information is available and reliable. Understanding different
market volatility trends often assists investors in timing the market. The proper use of volatility indicators allows traders to measure the risk of Fifth Third's stock against market volatility during both bullish and bearish trends.
The increased level of volatility that accompanies bear markets can directly affect
Fifth Third's stock price, adding stress to investors as they watch the value of their shares decrease. This often compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Fifth Third Bancorp (FITB) still holds potential for investors in November. With a current market valuation of
24.64, the stock is undervalued compared to its real value of
28.45. The
analyst consensus is a 'Buy' with 2 buys, 9 strong buys, and 7 holds among 17 estimates. The analyst target price estimated value is 31.411, with the highest estimated target price at 35 and the lowest at 26.5. This indicates a possible upside price of 28.35 and a downside price of 25. Considering these data points, FITB could provide a good opportunity for investors looking for a potential upside in November. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Fifth Third Bancorp. Please refer to our
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