Valley National Net Income vs. Operating Margin

VLYPP Preferred Stock  USD 24.99  0.01  0.04%   
Taking into consideration Valley National's profitability measurements, Valley National Bancorp may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in January. Profitability indicators assess Valley National's ability to earn profits and add value for shareholders.
For Valley National profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Valley National to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Valley National Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Valley National's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Valley National Bancorp over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Valley National's value and its price as these two are different measures arrived at by different means. Investors typically determine if Valley National is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Valley National'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.

Valley National Bancorp Operating Margin vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Valley National's current stock value. Our valuation model uses many indicators to compare Valley National value to that of its competitors to determine the firm's financial worth.
Valley National Bancorp is rated below average in net income category among its peers. It is rated third in operating margin category among its peers . The ratio of Net Income to Operating Margin for Valley National Bancorp is about  1,212,384,910 . 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 Valley National's earnings, one of the primary drivers of an investment's value.

Valley Operating Margin vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Valley National

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
568.85 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Valley National

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.47 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Valley Operating Margin Comparison

Valley National is currently under evaluation in operating margin category among its peers.

Valley National Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Valley National, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Valley National will eventually generate negative long term returns. The profitability progress is the general direction of Valley National's change in net profit over the period of time. It can combine multiple indicators of Valley National, 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.
Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, retail, insurance, and wealth management financial services products. The company was incorporated in 1927 and is headquartered in New York, New York. Valley National operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 3370 people.

Valley Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Valley National. 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 Valley National 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 Valley National's important profitability drivers and their relationship over time.

Use Valley National 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 Valley National 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 Valley National will appreciate offsetting losses from the drop in the long position's value.

Valley National Pair Trading

Valley National Bancorp Pair Trading Analysis

The ability to find closely correlated positions to Valley National could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Valley National 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 Valley National - 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 Valley National Bancorp to buy it.
The correlation of Valley National 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 Valley National moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Valley National Bancorp 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 Valley National 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Valley National position

In addition to having Valley National 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.

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Power Assets Theme
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Additional Tools for Valley Preferred Stock Analysis

When running Valley National's price analysis, check to measure Valley National's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Valley National is operating at the current time. Most of Valley National's value examination focuses on studying past and present price action to predict the probability of Valley National's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Valley National's price. Additionally, you may evaluate how the addition of Valley National to your portfolios can decrease your overall portfolio volatility.