Encore Stock Performance

WIRE Stock  USD 171.80  0.19  0.11%   
On a scale of 0 to 100, Encore Wire holds a performance score of 11. The firm shows a Beta (market volatility) of 1.2984, which means a somewhat significant risk relative to the market. Let's try to break down what Encore's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Encore Wire will likely underperform. Although it is vital to follow Encore Wire historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy in predicting 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 reviewing Encore Wire technical indicators, you can presently evaluate if the expected return of 0.32% will be sustainable into the future. Please utilizes Encore Wire information ratio, as well as the relationship between the potential upside and kurtosis to make a quick decision on whether Encore Wire price patterns will revert.
  
Encore Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Encore Wire are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Encore Wire exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more

Structure and Payout Changes

Forward Dividend Yield
0.0005
Payout Ratio
0.0028
Last Split Factor
3:2
Forward Dividend Rate
0.08
Dividend Date
2023-01-20

Encore Price Channel

Begin Period Cash Flow183.1 M
Total Cashflows From Investing Activities-118.2 M

Encore Wire Relative Risk vs. Return Landscape

If you would invest  14,301  in Encore Wire on November 6, 2022 and sell it today you would earn a total of  2,879  from holding Encore Wire or generate 20.13% return on investment over 90 days. Encore Wire is currently generating 0.3228% in daily expected returns and assumes 2.0943% risk (volatility on return distribution) over the 90 days horizon. In different words, 18% of stocks are less volatile than Encore, and 94% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Encore Wire is expected to generate 1.9 times more return on investment than the market. However, the company is 1.9 times more volatile than its market benchmark. It trades about 0.15 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.12 per unit of risk.

Encore Wire Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Encore Wire's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Encore Wire, and traders can use it to determine the average amount a Encore Wire'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 = 0.1541

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Estimated Market Risk
 2.09
  actual daily
 
 18 %
of total potential
 
1818
Expected Return
 0.32
  actual daily
 
 6 %
of total potential
 
66
Risk-Adjusted Return
 0.15
  actual daily
 
 11 %
of total potential
 
1111
Based on monthly moving average Encore Wire 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 Encore Wire by adding it to a well-diversified portfolio.

About Encore Wire Performance

To evaluate Encore Wire Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Encore Wire 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 Encore Stock'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 Encore Wire market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Encore'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.
Last ReportedProjected for 2023
Return on Investment 57.82  62.38 
Return on Average Assets 39.03  42.11 
Return on Average Equity 44.77  48.31 
Return on Invested Capital 0.12  0.14 
Return on Sales 0.06  0.07 

Things to note about Encore Wire

Checking the ongoing alerts about Encore Wire for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Encore Wire help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Check out Your Current Watchlist. You can also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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Is Encore Wire's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Encore Wire. If investors know Encore will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Encore Wire listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.172
Market Capitalization
3.2 B
Quarterly Revenue Growth
0.064
Return On Assets
0.3452
Return On Equity
0.488
The market value of Encore Wire is measured differently than its book value, which is the value of Encore that is recorded on the company's balance sheet. Investors also form their own opinion of Encore Wire's value that differs from its market value or its book value, called intrinsic value, which is Encore Wire's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Encore Wire's market value can be influenced by many factors that don't directly affect Encore Wire's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Encore Wire's value and its price as these two are different measures arrived at by different means. Investors typically determine Encore Wire value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encore Wire'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.