American Water Return On Equity vs. Number Of Shares Shorted
| AWK Stock | USD 136.94 1.37 0.99% |
For American Water profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Water to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Water Works utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Water's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Water Works over time as well as its relative position and ranking within its peers.
American |
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Water. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Water listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of American Water Works is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Water's value that differs from its market value or its book value, called intrinsic value, which is American Water'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 American Water's market value can be influenced by many factors that don't directly affect American Water'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 American Water's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Water is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Water'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.
American Water Works Number Of Shares Shorted vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Water's current stock value. Our valuation model uses many indicators to compare American Water value to that of its competitors to determine the firm's financial worth. American Water Works is rated fourth in return on equity category among its peers. It is rated second in number of shares shorted category among its peers making about 41,634,629 of Number Of Shares Shorted per Return On Equity. Comparative valuation analysis is a catch-all technique that is used if you cannot value American Water 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 Number Of Shares Shorted vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
American Water |
| = | 0.097 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
American Water |
| = | 4.04 M |
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
American Number Of Shares Shorted Comparison
American Water is currently under evaluation in number of shares shorted category among its peers.
American Water Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Water, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Water will eventually generate negative long term returns. The profitability progress is the general direction of American Water's change in net profit over the period of time. It can combine multiple indicators of American Water, 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 Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. American Water Works Company, Inc. was founded in 1886 and is headquartered in Camden, New Jersey. American Water operates under UtilitiesRegulated Water classification in the United States and is traded on New York Stock Exchange. It employs 6400 people.
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Water. 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 Water 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 Water's important profitability drivers and their relationship over time.
Use American Water 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 Water 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 Water will appreciate offsetting losses from the drop in the long position's value.American Water Pair Trading
American Water Works Pair Trading Analysis
The ability to find closely correlated positions to American Water 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 Water 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 Water - 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 Water Works to buy it.
The correlation of American Water 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 Water moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Water Works 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 Water 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 Water position
In addition to having American Water 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 Small Cap ETFs Thematic Idea Now
Small Cap ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Small Cap ETFs theme has 167 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 Small Cap ETFs Theme or any other thematic opportunities.
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To fully project American Water's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Water Works 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 American Water's income statement, its balance sheet, and the statement of cash flows.