Newfield Exploration Net Income vs. Beta
Considering Newfield Exploration's profitability and operating efficiency indicators, Newfield Exploration may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in May. Profitability indicators assess Newfield Exploration's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census.
Please note, there is a significant difference between Newfield Exploration's value and its price as these two are different measures arrived at by different means. Investors typically determine if Newfield Exploration is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Newfield Exploration'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.
For Newfield Exploration profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Newfield Exploration to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Newfield Exploration utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Newfield Exploration's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Newfield Exploration over time as well as its relative position and ranking within its peers.
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Newfield Exploration Beta vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Newfield Exploration's current stock value. Our valuation model uses many indicators to compare Newfield Exploration value to that of its competitors to determine the firm's financial worth. Newfield Exploration is considered to be number one stock in net income category among related companies. It is regarded fifth in beta category among related companies . The ratio of Net Income to Beta for Newfield Exploration is about 249,523,810 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Newfield Exploration by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Newfield Exploration's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. 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 Newfield Exploration's earnings, one of the primary drivers of an investment's value.Newfield Beta 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.
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| = | 524 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.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
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| = | 2.1 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Newfield Beta Comparison
Newfield Exploration is currently under evaluation in beta category among related companies.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Newfield Exploration will likely underperform.
Newfield Exploration Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Newfield Exploration, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Newfield Exploration will eventually generate negative long term returns. The profitability progress is the general direction of Newfield Exploration's change in net profit over the period of time. It can combine multiple indicators of Newfield Exploration, 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.
Newfield Exploration Company, an independent energy company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids in the United States. The company was founded in 1988 and is headquartered in The Woodlands, Texas. Newfield Exploration operates under Oil Gas EP classification in USA and is traded on BATS Exchange. It employs 1010 people.
Newfield Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Newfield Exploration. 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 Newfield Exploration 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 Newfield Exploration's important profitability drivers and their relationship over time.
Use Newfield Exploration 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 Newfield Exploration 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 Newfield Exploration will appreciate offsetting losses from the drop in the long position's value.Newfield Exploration Pair Trading
Newfield Exploration Pair Trading Analysis
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft 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 Microsoft - 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 Microsoft to buy it.
The correlation of Microsoft 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 Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft 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 Microsoft 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 Newfield Exploration position
In addition to having Newfield Exploration 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 Macroaxis Index Thematic Idea Now
Macroaxis Index
An experimental equal-weighted index theme of selected equities generated based on Macroaxis rating and scoring system. The Macroaxis Index theme has 52 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 Macroaxis Index Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. Note that the Newfield Exploration information on this page should be used as a complementary analysis to other Newfield Exploration's 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Consideration for investing in Newfield Stock
If you are still planning to invest in Newfield Exploration 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 Newfield Exploration's history and understand the potential risks before investing.
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