Waddell Story

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WDR -- USA Stock  

USD 14.75  0.75  4.84%

Waddell Reed Financial is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of November 2020. Because some of us are getting excited about financial services space, it makes sense to sum up Waddell Reed Financial in greater detail. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Should analysts change their consensus on Waddell Reed (NYSE:WDR) after the latest spike?
Waddell Reed has performance score of 3 on a scale of 0 to 100. The firm maintains a market beta of -0.1313, which attests to not very significant fluctuations relative to the market. Let's try to break down what Waddell's beta means in this case. As returns on the market increase, returns on owning Waddell Reed are expected to decrease at a much lower rate. During the bear market, Waddell Reed is likely to outperform the market. Although it is extremely important to respect Waddell Reed Financial historical price patterns, it is better to be realistic regarding the information on equity current price history. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By examining Waddell Reed Financial technical indicators, you can presently evaluate if the expected return of 0.13% will be sustainable into the future. Waddell Reed Financial right now maintains a risk of 2.88%. Please check out Waddell Reed Financial potential upside, and the relationship between the total risk alpha and kurtosis to decide if Waddell Reed Financial will be following its historical returns.
What is the right price you would pay to acquire a share of Waddell Reed? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Waddell Reed Financial this year

Annual and quarterly reports issued by Waddell Reed Financial are formal financial statements that are published yearly and quarterly and sent to Waddell stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Waddell Reed often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Waddell utilizes its cash?

To perform a cash flow analysis of Waddell Reed, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Waddell Reed is receiving and how much cash it distributes out in a given period. The Waddell Reed cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Waddell Reed Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Waddell Reed reported last year Net Cash Flow from Operations of 165.98 Million

Is Waddell a risky opportunity?

Let's check the volatility. Waddell is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Waddell (NYSE:WDR) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. buying a share of a Waddell Reed stock makes you a part-owner of that company.

Waddell Reed Financial Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Waddell Reed Financial. The Waddell consensus assessment is calculated by taking the average estimates from all of the analysts covering Waddell Reed

Strong Sell
Strong Buy00.0
Strong Sell250.0

Can Waddell Reed build up on the latest spike?

Standard deviation is down to 3.1. It may connote a possible volatility slump. Waddell Reed Financial shows above-average downside volatility for the selected time horizon. We advise investors to inspect Waddell Reed Financial further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Waddell Reed future alpha.

Our Final Takeaway

While many of the other players under the asset management industry are still a bit expensive, Waddell Reed may offer a potential longer-term growth to retail investors. While some retail investors may not share our view we believe it may be a good time to exit Waddell as the risk-reward trade off is not appealing enough to hold a position. 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 Waddell Reed.

About Contributor

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 Achuva Shats do not own shares of Waddell Reed Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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