Fannie Mae's average rating is Sell from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Fannie Mae market sentiment investors' perception of the future value of Fannie. Let us look at a few aspects of Fannie technical analysis. The company has Profit Margin (PM) of
51.31 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of
63.0 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.63.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Federal National Mortgage. In general, sophisticated investors focus on analyzing Federal National stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Federal National's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Federal National's intrinsic value. In addition to deriving basic predictive indicators for Federal National, many experienced traders also check how macroeconomic factors affect Federal National price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Federal National'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 Federal National. Your research has to be compared to or analyzed against Federal National's peers to derive any actionable benefits. When done correctly, Federal National'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 Federal National Mortgage.
Watch out for price decline
Please consider monitoring Federal National on a daily basis if you are holding a position in it. Federal National is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Federal National stock to be traded above the $1 level to remain listed. If Federal National otc stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How does Federal Stands against Peers?
Analyzing Federal National competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Federal National across multiple sectors and
thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out
Federal National Competition DetailsCloser look at Fannie Mae Mean Deviation
Fannie Mae has current Mean Deviation of 3.57. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
Mean Deviation | = | SUM(RET DEV) N |
| = | 3.57 |
| SUM | = | Summation notation |
| RET DEV | = | Sum of return deviations of Fannie Mae |
| N | = | Number of calculation points for selected time horizon |
Let's now compare Fannie Mae Mean Deviation to its closest peers:
| FNMA | 3.5718182658402204 |
| ELVT | 3.12 |
| LU | 4.21 |
| ENVA | 2.53 |
| LC | 4.23 |
Will Fannie price slip impact its balance sheet?
Downside variance is down to 23.73. It may suggest a possible volatility slip. Fannie Mae exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Fannie Mae individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Fannie Mae future systematic risk.
Our Final Takeaway
Whereas other entities under the mortgage finance industry are still a bit expensive, Fannie Mae may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Fannie valuation and our trade advice on Fannie Mae is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Fannie Mae.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Federal National Mortgage. Please refer to our
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