As the markets begin to shift from the highs, now would be a good time to look at your holdings and decide what to take profit on and what to continue holding. Fifth Third Bank for the fourth quarter posted a net income available to common shareholders of $372 million, or $0.49 per diluted common share. Also, pre tax income of $509 million was reported and pre-provisions net revenue of $563 million in the fourth quarter. Comparing it to the chart on the monthly time frame, we can see that investors have certainly taken interest in the stock as the recent months have show a large jump to the upside.
If you’re looking to gain exposure to the financial sector but do not want to take on company specific risk, take a look at ETFs such as XLF, which is a fund that tracks the financial sector, which includes many different banks. This would be a great alternative to company specific risk because each bank has a small percentage of the whole fund. If Fifth Third went belly up for any reason, it would not destroy the fund and you would be alright, compare to holding just the equity.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Fifth Third income statement, its balance sheet, and the statement of cash flows. Potential Fifth Third investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Fifth Third investors may use each financial statement separately, they are all related. The changes in Fifth Third's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Fifth Third's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Fifth Third
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Fifth Third performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Fifth Third shares is the value that is considered the true value of the share. If
the intrinsic value of Fifth is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Fifth Third. Please read more on our
fundamental analysis page.
How effective is Fifth Third in utilizing its assets?
Fifth Third Bancorp reports assets on its Balance Sheet. It represents the amount of Fifth resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Fifth Third aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Regional Banks space. To get a better handle on how balance sheet or income statements item affect Fifth volatility, please check the breakdown of all its
fundamentals.
Are Fifth Third Earnings Expected to grow?
The
future earnings power of Fifth Third involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Fifth Third factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Fifth Third
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Fifth
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Fifth Third earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Fifth Third dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Fifth one year expected dividend income is about USD0.89 per share.
At present, Fifth Third's
Dividends Paid is projected to increase significantly based on the last few years of reporting. The current year's
Dividend Paid And Capex Coverage Ratio is expected to grow to 7.74, whereas
Dividend Yield is forecasted to decline to 0.02.
Investing in dividend-paying stocks, such as Fifth Third Bancorp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Fifth Third must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Fifth Third. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Fifth Third Gross Profit
Fifth Third Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Fifth Third previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Fifth Third Gross Profit growth over the last 10 years. Please check Fifth Third's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Fifth Third
Of course with the Trump administration, it is difficult to tell how the economy is going to react, as it is still too early to decide. As previously mentioned, if the Fed slow their rate hike, that will more than likely have a negative affect on the company and the industry as a whole. If you want exposure to the financial industry, you can take non traditional routes and look at insurance companies and real estate companies. They bring a different set of risks and potential downfalls, but they have exposure to the financial world in their own unique way.
Fifth Third Bank has been a well established bank for quite some time and they market their company very well around the Midwest. However, this bank may not be the best fit for your portfolio, so be sure to understand your current risk tolerance and alpha, focusing on if there is a possibility to invest in this company. Again, be sure to look at alternatives such as an ETF, and if you become stuck, just reach out to an investing professional as they can certainly help point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Fifth Third Bancorp. Please refer to our
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