American Mutual Fund Buy Hold or Sell Recommendation

CDWFX -  USA Fund  

USD 9.19  0.04  0.44%

Assuming the 90 days horizon and your way above-average risk tolerance, our recommendation regarding American Funds Developing is 'Not Rated'. Macroaxis provides American Funds buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CDWFX positions. The advice algorithm takes into account all of American Funds' available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from American Funds' buy-and-hold perspective. Continue to American Funds Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual funds such as American and provide practical buy, sell, or hold recommendation based on selected investing horizon and risk tolerance towards American Funds Developing.

Execute American Funds Buy or Sell Advice

The American recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on American Funds Developing. Macroaxis does not own or have any residual interests in American Funds Developing or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute American Funds' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell American FundsBuy American Funds
Strong Sell

Volatility

Out of controlDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

Not AvailableDetails
For the selected time horizon American Funds Developing has a Mean Deviation of 1.25, Standard Deviation of 1.52 and Variance of 2.31
We provide trade advice to complement the prevailing expert consensus on American Funds Developing. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the fund's potential to grow using all technical and fundamental data available at the time. Use American Funds Developing price to book and five year return to ensure your buy or sell decision on American Funds Developing is adequate.

American Funds Trading Alerts and Improvement Suggestions

American Funds generated a negative expected return over the last 90 days
American Funds Developing generated five year return of 0.0%
This fund holds 95.85% of its assets under management (AUM) in equities

American Funds Returns Distribution Density

The distribution of American Funds' historical returns is an attempt to chart the future uncertainty of American Funds' future price movements. The chart of the probability distribution of American Funds stock daily returns describes the distribution of returns around its average expected value. We use American Funds Developing price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Funds returns is essential to provide solid investment advice for American Funds stock.
Mean Return-0.17Value At Risk-2.8
Potential Upside1.98Standard Deviation1.52
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Funds historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

American Funds Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Funds or American Funds sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Funds stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.18
β
Beta against DOW0.0197
σ
Overall volatility
1.52
Ir
Information ratio -0.02

American Funds Volatility Alert

American Funds Developing exhibits very low volatility with skewness of -0.24 and kurtosis of -0.53. However, we advise investors to further study American Funds Developing technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Funds' mutual fund risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact American Funds' mutual fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

American Funds Implied Volatility

American Funds' implied volatility exposes the market's sentiment of American Funds Developing stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if American Funds' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that American Funds stock will not fluctuate a lot when American Funds' options are near their expiration.

American Funds Fundamentals Vs Peers

Comparing American Funds' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze American Funds' direct or indirect competition across all of the common fundamentals between American Funds and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Funds or determine the mutual funds which would be an excellent addition to an existing portfolio. Peer analysis of American Funds' fundamental indicators could also be used in its relative valuation, which is a method of valuing American Funds by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare American Funds to competition
FundamentalsAmerican FundsPeer Average
Price to Earning15.33 X6.53 X
Price to Book2.27 X0.74 X
Price to Sales1.63 X0.61 X
One Year Return(3.71) %4.15 %
Three Year Return(0.93) %3.60 %
Five Year Return(0.19) %3.24 %
Net Asset3.29 B4.11 B
Last Dividend Paid0.040.65
Cash Position Weight3.87 %10.61 %
Equity Positions Weight95.85 %63.90 %
Bond Positions Weight0.28 %11.24 %

About American Funds Buy or Sell Advice

When is the right time to buy or sell American Funds Developing? Buying financial instruments such as American Mutual Fund isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although American Funds investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having American Funds 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 Corporate Bonds Thematic Idea Now

Corporate Bonds
Corporate Bonds Theme
Funds or Etfs investing in different types of corporate debt instruments. The Corporate Bonds theme has 40 constituents.
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 Corporate Bonds Theme or any other thematic opportunities.
View All  Next Launch Corporate Bonds
Continue to American Funds Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the American Funds Developing information on this page should be used as a complementary analysis to other American Funds' 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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Please note, there is a significant difference between American Funds' value and its price as these two are different measures arrived at by different means. Investors typically determine American Funds value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Funds' 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.