As many baby boomers are indifferent towards real estate space, it makes sense to go over AGNC Investment Corp against current market trends. As expected, AGNC Investment is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The returns on investing in AGNC Investment and the market returns of the last few months appear uncorrelated. The appearance of strong basic indicators of the company suggests a short-term price swing for investors of AGNC Investment. AGNC Investment Corp is scheduled to announce its earnings today. The next earnings report is expected on the 5th of May 2021. The stock is in a buyout trend.
The company's average rating is Buy from 12 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 AGNC Investment market sentiment investors' perception of the future value of AGNC Investment. Let us look at a few aspects of AGNC Investment technical analysis. The company has Profit Margin (PM) of (246.38) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of AGNC Investment Corp. In general, sophisticated investors focus on analyzing AGNC Investment stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build AGNC Investment'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 AGNC Investment's intrinsic value. In addition to deriving basic predictive indicators for AGNC Investment, many experienced traders also check how macroeconomic factors affect AGNC Investment 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 AGNC Investment'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 AGNC Investment. Your research has to be compared to or analyzed against AGNC Investment's peers to derive any actionable benefits. When done correctly, AGNC Investment'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 AGNC Investment Corp.
How does AGNC Stands against Peers?
Analyzing AGNC Investment 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 AGNC Investment 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 AGNC Investment Competition Details
How important is AGNC Investment's Liquidity
AGNC Investment financial leverage refers to using borrowed capital as a funding source to finance AGNC Investment Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AGNC Investment financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to AGNC Investment's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of AGNC Investment's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between AGNC Investment's total debt and its cash.
AGNC Investment Gross Profit
AGNC Investment Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing AGNC Investment previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show AGNC Investment Gross Profit growth over the last 10 years. Please check AGNC Investment's gross profit and other fundamental indicators for more details.
Closer look at AGNC Investment Variance
AGNC Investment Corp has current Variance of 1.16. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean. Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance
=
SUM(RET DEV)2
N
=
1.16
SUM
=
Summation notation
RET DEV
=
Actual returns deviation over selected period
N
=
Number of points for the period
Let's now compare AGNC Investment Variance to its closest peers:
AGNC
DX
EARN
FREVS
ABR
AGNC
1.1573905502580468
DX
1.74
EARN
3.47
FREVS
12.0
ABR
5.34
Will AGNC Investment continue to rise?
The variance is down to 1.16 as of today. AGNC Investment Corp has low volatility with Treynor Ratio of -1.13, Maximum Drawdown of 7.31 and kurtosis of 5.19. However, we advice all investors to further analyze AGNC Investment Corp to make certain all market information is desiminated and is consistent with the current expectations about AGNC Investment upside potential.
Our Conclusion on AGNC Investment
Whereas few other entities under the reit—mortgage industry are still a bit expensive, AGNC Investment may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of AGNC Investment as the current risk-reward utility is not appealing enough. 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 AGNC Investment.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste 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
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