PacWest Bancorp, a key player in the domestic banking sector, is a company that has been under the spotlight in the US stock market. As of October 22, 2023, the company's market capitalization stands at $924.1 million, with a valuation market value of $7.3 billion. The company's cash and short-term investments amount to a significant
$7.1 billion, and it ended the period with a cash flow of
$2.2 billion. However, the company has experienced a loss in earnings per share (EPS) of $10.62, reflecting a negative return on assets of 3.06%. This is a critical factor to consider for potential investors. Despite this, the company's EPS estimate for the current year is $0.43, indicating a potential turnaround. PacWest Bancorp's PEG ratio stands at 1.56, while its payout ratio is 0.2158. The company's 200-day moving average is 12.4449, and it offers a dividend per share of $0.76. The company's free cash flow is $581.1 million, and its total cash from operating activities is $702 million. Analysts have a mixed outlook on PacWest Bancorp. The number of analysts giving a 'buy' recommendation is 1, while 2 analysts have given a 'strong buy' recommendation. The overall consensus, however, is to 'hold'. The lowest estimated target price from analysts is $8, while the highest is $17, with an estimated target price value of $11.785. The possible upside price is $10.08. In comparison to KB Financial Group, PacWest Bancorp presents a unique set of investment prospects. The company's performance and
future outlook should be evaluated in the context of its market position,
financial health, and the broader trends in the banking sector. Today, we may observe evidence suggesting that KB Financial may recover more slowly from the current downturn, as its shares have fallen 1.27% compared to PacWest Bancorp's 0.68%. As numerous discerning traders are steering clear of the banking sector, it seems prudent to concentrate more closely on PacWest Bancorp and understand its position relative to KB Financial and other comparable entities. We will review some of the competitive aspects of both PacWest Bancorp and KB Financial.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Janus or Janus is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
Correlation Between Janus and Janus Contrarian
In general, Fund analysis is a method for investors and traders to make individual buying and selling decisions. Mutual Fund correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Janus Contrarian together with similar or unrelated positions with a negative correlation. For example, you can also add Janus Contrarian to your portfolio. If Janus Contrarian is not perfectly correlated to Janus Contrarian it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Janus Contrarian, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Janus Contrarian and Janus Contrarian in your portfolio? Please note if you are using this as a pair-trade strategy between Janus Contrarian and Janus Contrarian, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between JCNIX and JCNRX for more information.
Sector Allocation
Exchange-Traded Funds use many different techniques to achieve diversification. One of the ways Janus Contrarian ETF is managing risk is by picking assets from different sectors and across various asset classes. It helps to ensure that returns are uncorrelated, and risk is spread across the underlying asset classes and industries. Within the same asset class, diversification can be achieved by investing in various investment styles through cross-sector allocation. Below map breaks down Janus Contrarian sector allocation.
VolatilityInstrument Allocation
The asset allocation of funds such as Janus Contrarian usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Janus Trarian Fund
DetailsBreaking down the case for Janus Contrarian
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check PacWest Bancorp revenue. Based on the latest financial disclosure, PacWest Bancorp reported 1.29
B of revenue. This is 88.53% lower than that of the Banks sector and significantly higher than that of the
Financials industry. The revenue for all United States stocks is 86.37% higher than that of PacWest Bancorp. As for KB Financial we see revenue of 16683.03
B, which is much higher than that of the Financials
| PACW | 1.29 Billion | 0.007706 |
| Sector | 0.0 | 0.0 |
| KB | 16.68 Trillion | 99.99 |
PacWest Bancorp, a key player in the Banks - Regional industry, has been under the microscope of investors lately. The company, traded on NASDAQ, has a market capitalization of
924.08M and a book value of 17.164. Despite a negative operating margin of -4.0 and a profit margin of -1.17, the company has managed to retain earnings of 1.42B.
PacWest Bancorp's shares are largely held by institutions, with 84.87% of shares owned by them, while insiders hold 1.52%. The company has a total of 120.01M shares outstanding, with 17.6M of them shorted. The short ratio stands at 6.85X, indicating a moderate level of short interest. The company's
financial health is a mixed bag. It has a total asset of
41.23B and a net income of 423.61M. However, it has a total debt of 4.15B and a change in cash of -1.8B. The company's cash and short term investments stand at 7.1B, with a cash per share ratio of 20.90X. In terms of
future prospects, the EPS estimate for the current year is 0.43, while for the next year it is 0.79. The company's five-year return stands at 5.23%, indicating a steady performance. However, the probability of bankruptcy is 48.17%, which is a significant risk factor. In conclusion, while PacWest Bancorp has some strong points, it also carries significant risks, and investors should carefully evaluate these factors before making a decision. .
PacWest Bancorp has 86 percent chance to stay above $7.45 in 2 months
PacWest Bancorp's latest kurtosis is currently at 18.65, indicating a high level of volatility and a potential for significant price swings. Despite this volatility, our predictive models suggest an 86 percent probability that the stock will maintain a price above $7.45 over the next two months. This implies that while investors should be prepared for potential price fluctuations, the overall trend for PacWest Bancorp remains positive. PacWest Bancorp exhibits very low volatility with a skewness of 0.15 and a kurtosis of 18.65. However, we recommend investors to further study PacWest Bancorp's technical indicators to ensure all market information is available and reliable. Understanding different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators enables traders to measure PacWest Bancorp's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly impact
PacWest Bancorp's stock price, adding stress to investors as they watch the value of their shares plummet.
This usually compels investors to rebalance their portfolios by purchasing different stocks as prices fall. In conclusion, investing in PacWest Bancorp stock presents a mixed bag of opportunities and risks. With an analyst overall consensus of 'Hold', the company has garnered
1 Buy,
2 Strong Buys, and
5 Holds from analysts. The valuation real value stands at
$8.91, which is higher than the naive expected forecast value of $7.75 and the valuation market value of $7.3. However, the possible upside price of $10.08 and the highest estimated target price of $17 suggest potential for growth. On the flip side, the possible downside price of $5.42 and the lowest estimated target price of $8 indicate potential risks. Therefore, investors should exercise caution and conduct thorough research before making any investment decisions regarding PacWest Bancorp. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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 Aina Ster do not own shares of Janus Trarian Fund. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
