FIRST Story

FRC -- USA Stock

USD 153.71 4.33 2.74%

Macroaxis Story

As many millenniums are excited about financial services space, it is only fair to go over FIRST REPUBLIC BANK against current market trends. As we have suggested previously, FIRST REPUBLIC is beginning its slip as investors shift to be more bearish due to the increased sector volatility. The returns on the market and returns on FIRST REPUBLIC appear slightly correlated for the last few months. Strong basic indicators of the company may also suggest signals of long term gains for FIRST investors. FIRST REPUBLIC BANK is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 13th of October 2020.

Published over three months ago

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Should you buy FIRST REPUBLIC (NYSE:FRC) based on current technical indicators?

FIRST REPUBLIC BANK's average rating is Hold from 19 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 FIRST REPUBLIC market sentiment investors' perception of the future value of FIRST. Let us look at a few aspects of FIRST technical analysis. The company has Net Profit Margin of 27.89 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 35.8 %, which entails that for every 100 dollars of revenue, it generated 0.36 of operating income.

Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of FIRST REPUBLIC BANK. In general, we focus on analyzing FIRST REPUBLIC stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build FIRST REPUBLIC'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 FIRST REPUBLIC's intrinsic value. In addition to deriving basic predictive indicators for FIRST REPUBLIC, we also check how macroeconomic factors affect FIRST REPUBLIC 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, frequently view the market will even out over time. This tendency of FIRST REPUBLIC's stock 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 use the tools below to analyze the current value of FIRST REPUBLIC in the context of predictive analytics.

Please note, it is not enough to conduct a financial or market analysis of a single entity such as FIRST REPUBLIC. Your research has to be compared to or analyzed against FIRST REPUBLIC's peers to derive any actionable benefits. When done correctly, FIRST REPUBLIC's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in FIRST REPUBLIC BANK.

How does FIRST Stands against Peers?

Analyzing FIRST REPUBLIC 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 FIRST REPUBLIC 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 FIRST REPUBLIC Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for FIRST REPUBLIC, but it might be worth checking our own buy vs. sell analysis

Closer look at FIRST REPUBLIC Mean Deviation

FIRST REPUBLIC BANK has current Mean Deviation of 1.25. 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)

1.25

SUM	=	Summation notation
RET DEV	=	Sum of return deviations of FIRST REPUBLIC
N	=	Number of calculation points for selected time horizon

Let's now compare FIRST REPUBLIC Mean Deviation to its closest peers:

FRC

BBT

USB

	FRC	1.25
	RF	2.14
	BBT	2.86
	USB	1.71

FIRST REPUBLIC has a small chance to finish above $126 in 2 months

Current market risk adjusted performance is at 0.36. FIRST REPUBLIC BANK has relatively low volatility with skewness of -0.05 and kurtosis of -0.16. However, we advise all investors to independently investigate FIRST REPUBLIC BANK to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Current Takeaway on FIRST REPUBLIC Investment

Whereas some other companies in the banks?regional industry are either recovering or due for a correction, FIRST REPUBLIC may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 12th of October 2020, we believe that FIRST REPUBLIC is currently fairly valued with below average chance of financial distress in the next two years. Our ongoing 30 days 'Buy-Sell' recommendation on the company is Strong Buy.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of FIRST REPUBLIC BANK. Please refer to our Terms of Use for any information regarding our disclosure principles.

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FIRST Story

USD 153.71 4.33 2.74%

How does FIRST Stands against Peers?

What do experts say?

Closer look at FIRST REPUBLIC Mean Deviation

FIRST REPUBLIC has a small chance to finish above $126 in 2 months

The Current Takeaway on FIRST REPUBLIC Investment

About Contributor

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

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