Basic Materials Price To Earning vs. Ten Year Return
Based on Basic Materials' profitability indicators, Basic Materials Fund may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Basic Materials' ability to earn profits and add value for shareholders.
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as various price indices.
Please note, there is a significant difference between Basic Materials' value and its price as these two are different measures arrived at by different means. Investors typically determine if Basic Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Basic Materials' 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.
For Basic Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Basic Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Basic Materials Fund utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Basic Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Basic Materials Fund over time as well as its relative position and ranking within its peers.
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Basic Materials Ten Year Return vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Basic Materials's current stock value. Our valuation model uses many indicators to compare Basic Materials value to that of its competitors to determine the firm's financial worth. Basic Materials Fund is rated top fund in price to earning among similar funds. It also is rated top fund in ten year return among similar funds reporting about 0.17 of Ten Year Return per Price To Earning. The ratio of Price To Earning to Ten Year Return for Basic Materials Fund is roughly 5.73 . 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 Basic Materials' earnings, one of the primary drivers of an investment's value.Basic Ten Year Return 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.
Basic Materials |
| = | 18.97 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.
Ten Year Return shows the total annualized return generated from holding a fund for the last 10 years and represents fund's capital appreciation, including dividends losses and capital gains distributions. This return indicator is considered by many investors to be the ultimate measures of fund performance and can reflect the overall performance of the market or market segment it invests in.
Basic Materials |
| = | 3.31 % |
Although Ten Year Fund Return indicator can give a sense of overall fund long-term potential, it is recommended to compare funds performances against other similar funds or market benchmarks for the same 10-year interval.
Basic Ten Year Return Comparison
Basic Materials is currently under evaluation in ten year return among similar funds.
Basic Materials Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Basic Materials, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Basic Materials will eventually generate negative long term returns. The profitability progress is the general direction of Basic Materials' change in net profit over the period of time. It can combine multiple indicators of Basic Materials, 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.
The fund invests substantially all of its net assets in equity securities of Basic Materials Companies that are traded in the United States and in derivatives. Rydex Series is traded on NASDAQ Exchange in the United States.
Basic Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Basic Materials. 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 Basic Materials 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 Basic Materials' important profitability drivers and their relationship over time.
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In addition to having Basic Materials 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?
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Most Shorted Equities
Dynamically calculated list of top equities currently trending upward via a buy-out by investors. The Most Shorted Equities theme has 106 constituents at this time.
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Other Information on Investing in Basic Mutual Fund
To fully project Basic Materials' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Basic Materials 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 Basic Materials' income statement, its balance sheet, and the statement of cash flows.
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