Cue Health Price To Earning vs. Return On Equity
Considering the key profitability indicators obtained from Cue Health's historical financial statements, Cue Health may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Cue Health's ability to earn profits and add value for shareholders.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
For Cue Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cue Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cue Health utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cue Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cue Health over time as well as its relative position and ranking within its peers.
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Cue Health Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cue Health's current stock value. Our valuation model uses many indicators to compare Cue Health value to that of its competitors to determine the firm's financial worth. Cue Health is rated below average in price to earning category among its peers. It is rated below average in return on equity category among its peers . 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 Cue Health's earnings, one of the primary drivers of an investment's value.Cue Return On Equity 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.
Cue Health |
| = | 16.86 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.
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.
Cue Health |
| = | -0.95 |
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.
Cue Return On Equity Comparison
Cue Health is currently under evaluation in return on equity category among its peers.
Cue Health Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cue Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cue Health will eventually generate negative long term returns. The profitability progress is the general direction of Cue Health's change in net profit over the period of time. It can combine multiple indicators of Cue Health, 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.
Cue Health Inc., a healthcare technology company, designs and develops diagnostic platform for diagnostic tests for individuals, enterprises, healthcare providers and payors, and public health agencies. Cue Health Inc. was incorporated in 2010 and is headquartered in San Diego, California. Cue Health operates under Health Information Services classification in the United States and is traded on NASDAQ Exchange. It employs 1585 people.
Cue Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cue Health. 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 Cue Health 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 Cue Health's important profitability drivers and their relationship over time.
Use Cue Health 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 Cue Health 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 Cue Health will appreciate offsetting losses from the drop in the long position's value.Cue Health Pair Trading
Cue Health Pair Trading Analysis
The ability to find closely correlated positions to Cue Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cue Health 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 Cue Health - 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 Cue Health to buy it.
The correlation of Cue Health 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 Cue Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cue Health 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 Cue Health 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 Cue Health position
In addition to having Cue Health 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 Municipals ETFs Thematic Idea Now
Municipals ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Municipals ETFs theme has 111 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 Municipals ETFs Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Consideration for investing in Cue Stock
If you are still planning to invest in Cue Health check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Cue Health's history and understand the potential risks before investing.
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