Chances of FNB Corp to slip after the volatility builds up

It appears FNB Corp will continue to recover much faster as its share price surged up 1.09% today. FNB Corp current daily volatility is 2.18 percent, with a beta of 0.0 and an alpha of 0.27 over DOW. While some baby boomers are getting worried about banking, it is reasonable to go over FNB Corp. We will evaluate if FNB Corp shares are reasonably priced going into May.
Published over a year ago
View all stories for FNB Corp | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Gabriel Shpitalnik

FNB Corp has roughly 1.76 B in cash with 113 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.55.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. FNB Corp has an asset utilization ratio of 6.38 percent. This suggests that the company is making $0.0638 for each dollar of assets. An increasing asset utilization means that FNB Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in FNB Corp, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding FNB Corp along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of FNB Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as FNB Corp. Your research has to be compared to or analyzed against FNB Corp's peers to derive any actionable benefits. When done correctly, FNB Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in FNB Corp.

How important is FNB Corp's Liquidity

FNB Corp financial leverage refers to using borrowed capital as a funding source to finance FNB Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FNB Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to FNB Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of FNB Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between FNB Corp's total debt and its cash.

FNB Corp Gross Profit

FNB Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing FNB Corp 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 FNB Corp Gross Profit growth over the last 10 years. Please check FNB Corp's gross profit and other fundamental indicators for more details.

FNB Corp Correlation with Peers

Investors in FNB can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in FNB Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of FNB Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities FNB is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of FNB for more details

Breaking it down a bit more

FNB Corp appears to be not too volatile, given 1 month investment horizon. FNB Corp retains Efficiency (Sharpe Ratio) of 0.13, which denotes the company had 0.13% of return per unit of risk over the last month. Our philosophy in predicting the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for FNB Corp, which you can use to evaluate the future volatility of the firm. Please utilize FNB Corp's Coefficient Of Variation of 793.37, market risk adjusted performance of 108.37, and Downside Deviation of 2.52 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Momentum Analysis of FNB Corp suggests possible reversal in May

The variance is down to 4.97 as of today.
As of the 18th of April 2021, FNB Corp owns the Downside Deviation of 2.52, market risk adjusted performance of 108.37, and Coefficient Of Variation of 793.37. FNB Corp technical analysis allows you to utilize past data patterns in order to determine a pattern that computes the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume patterns, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for FNB Corp, which can be compared to its peers in the sector. Please confirm FNB Corp downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if FNB Corp is priced favorably, providing market reflects its prevailing price of 12.99 per share. Given that FNB Corp has jensen alpha of 0.2705, we urge you to verify FNB Corp's latest market performance to make sure the company can sustain itself in the future.

Our Bottom Line On FNB Corp

Whereas few other entities within the banks—regional industry are still a little expensive, even after the recent corrections, FNB Corp may offer a potential longer-term growth to investors. To summarize, as of the 18th of April 2021, we believe that at this point, FNB Corp is overvalued with below average probability of financial unrest within the next 2 years. However, our concluding 'Buy-Sell' recommendation on the company is Strong Buy.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

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 Ellen Johnson do not own shares of FNB Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com