American Balanced Fund Manager Performance Evaluation

ABALX Fund  USD 34.05  0.01  0.03%   
The fund shows a Beta (market volatility) of 0.81, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, American Balanced's returns are expected to increase less than the market. However, during the bear market, the loss of holding American Balanced is expected to be smaller as well.

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in American Balanced are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, American Balanced is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
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Is American Funds Balanced A a Strong Mutual Fund Pick Right Now - Zacks Investment Research
03/26/2024
Expense Ratio Date1st of March 2023
Expense Ratio0.5700
  

American Balanced Relative Risk vs. Return Landscape

If you would invest  3,251  in American Balanced on February 21, 2024 and sell it today you would earn a total of  154.00  from holding American Balanced or generate 4.74% return on investment over 90 days. American Balanced is currently producing 0.0749% returns and takes up 0.5309% volatility of returns over 90 trading days. Put another way, 4% of traded mutual funds are less volatile than American, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days.
  Expected Return   
       Risk  
Assuming the 90 days horizon American Balanced is expected to generate 1.15 times less return on investment than the market. But when comparing it to its historical volatility, the company is 1.1 times less risky than the market. It trades about 0.14 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.15 of returns per unit of risk over similar time horizon.

American Balanced Current Valuation

Fairly Valued
Today
34.05
Please note that American Balanced's price fluctuation is very steady at this time. At this time, the entity appears to be fairly valued. American Balanced shows a prevailing Real Value of $33.88 per share. The current price of the fund is $34.05. We determine the value of American Balanced from analyzing fund fundamentals and technical indicators as well as its Probability Of Bankruptcy. In general, we favor acquiring undervalued mutual funds and dropping overvalued mutual funds since, at some point, mutual fund prices and their ongoing real values will blend.
Our valuation method for American Balanced is useful when determining the fair value of the American mutual fund, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Balanced. Since American Balanced is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Mutual Fund. However, American Balanced's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  34.05 Real  33.88 Hype  34.05 Naive  34.28
The real value of American Mutual Fund, also known as its intrinsic value, is the underlying worth of American Balanced Mutual Fund, which is reflected in its stock price. It is based on American Balanced's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of American Balanced's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence American Balanced's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
33.88
Real Value
34.41
Upside
Estimating the potential upside or downside of American Balanced helps investors to forecast how American mutual fund's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Balanced more accurately as focusing exclusively on American Balanced's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
11.8711.8811.89
Details
Hype
Prediction
LowEstimatedHigh
33.5234.0534.58
Details
Potential
Annual Dividend
LowForecastedHigh
0.160.160.16
Details

American Balanced Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for American Balanced's investment risk. Standard deviation is the most common way to measure market volatility of mutual funds, such as American Balanced, and traders can use it to determine the average amount a American Balanced's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.141

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Estimated Market Risk

 0.53
  actual daily
4
96% of assets are more volatile

Expected Return

 0.07
  actual daily
1
99% of assets have higher returns

Risk-Adjusted Return

 0.14
  actual daily
11
89% of assets perform better
Based on monthly moving average American Balanced is performing at about 11% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of American Balanced by adding it to a well-diversified portfolio.

American Balanced Fundamentals Growth

American Mutual Fund prices reflect investors' perceptions of the future prospects and financial health of American Balanced, and American Balanced fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on American Mutual Fund performance.

About American Balanced Performance

To evaluate American Balanced Mutual Fund as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when American Balanced generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare American Mutual Fund's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand American Balanced market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents American's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
The fund uses a balanced approach to invest in a broad range of securities, including common stocks and investment-grade bonds. It also invests in securities issued and guaranteed by the U.S. government and by federal agencies and instrumentalities. In addition, the fund may invest a portion of its assets in common stocks, most of which have a history of paying dividends, bonds and other securities of issuers domiciled outside the United States.

Things to note about American Balanced performance evaluation

Checking the ongoing alerts about American Balanced for important developments is a great way to find new opportunities for your next move. Mutual Fund alerts and notifications screener for American Balanced help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Evaluating American Balanced's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate American Balanced's mutual fund performance include:
  • Analyzing American Balanced's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether American Balanced's stock is overvalued or undervalued compared to its peers.
  • Examining American Balanced's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating American Balanced's management team can have a significant impact on its success or failure. Reviewing the track record and experience of American Balanced's management team can help you assess the Mutual Fund's leadership.
  • Pay attention to analyst opinions and ratings of American Balanced's mutual fund. These opinions can provide insight into American Balanced's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating American Balanced's mutual fund performance is not an exact science, and many factors can impact American Balanced's mutual fund market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Balanced. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Please note, there is a significant difference between American Balanced's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Balanced is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Balanced's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.