Reeds Price To Earning vs. Profit Margin
| REEDDelisted Stock | USD 3.91 0.69 21.43% |
For Reeds profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reeds to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reeds Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reeds's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reeds Inc over time as well as its relative position and ranking within its peers.
Reeds |
Reeds Inc Profit Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Reeds's current stock value. Our valuation model uses many indicators to compare Reeds value to that of its competitors to determine the firm's financial worth. Reeds Inc is rated below average in price to earning category among its peers. It is rated below average in profit margin 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 Reeds' earnings, one of the primary drivers of an investment's value.Reeds Profit Margin 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.
Reeds |
| = | (5.28) 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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Reeds |
| = | (0.36) % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Reeds Profit Margin Comparison
Reeds is currently under evaluation in profit margin category among its peers.
Reeds Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Reeds, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reeds will eventually generate negative long term returns. The profitability progress is the general direction of Reeds' change in net profit over the period of time. It can combine multiple indicators of Reeds, 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.
Reeds, Inc. manufactures and distributes handcrafted natural beverages in the United States and internationally. Reeds, Inc. was founded in 1987 and is based in Norwalk, Connecticut. Reeds operates under BeveragesNon-Alcoholic classification in the United States and is traded on NASDAQ Exchange. It employs 31 people.
Reeds Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Reeds. 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 Reeds 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 Reeds' important profitability drivers and their relationship over time.
Use Reeds 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 Reeds 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 Reeds will appreciate offsetting losses from the drop in the long position's value.Reeds Pair Trading
Reeds Inc Pair Trading Analysis
The ability to find closely correlated positions to Reeds could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Reeds 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 Reeds - 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 Reeds Inc to buy it.
The correlation of Reeds 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 Reeds moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Reeds Inc 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 Reeds 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 Reeds position
In addition to having Reeds 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 Healthcare Thematic Idea Now
Healthcare
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 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 Healthcare Theme or any other thematic opportunities.
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any otc stock could be closely tied with the direction of predictive economic indicators such as signals in income. Note that the Reeds Inc information on this page should be used as a complementary analysis to other Reeds' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Consideration for investing in Reeds OTC Stock
If you are still planning to invest in Reeds Inc 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 Reeds' history and understand the potential risks before investing.
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