Health Care Price To Earning vs. Price To Sales
| XLV Etf | USD 144.16 0.13 0.09% |
For Health Care profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Health Care to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Health Care Select utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Health Care's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Health Care Select over time as well as its relative position and ranking within its peers.
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The market value of Health Care Select is measured differently than its book value, which is the value of Health that is recorded on the company's balance sheet. Investors also form their own opinion of Health Care's value that differs from its market value or its book value, called intrinsic value, which is Health Care'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 Health Care's market value can be influenced by many factors that don't directly affect Health Care'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 Health Care's value and its price as these two are different measures arrived at by different means. Investors typically determine if Health Care is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Health Care'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.
Health Care Select Price To Sales vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Health Care's current stock value. Our valuation model uses many indicators to compare Health Care value to that of its competitors to determine the firm's financial worth. Health Care Select is rated first in price to earning as compared to similar ETFs. It is rated first in price to sales as compared to similar ETFs fabricating about 0.36 of Price To Sales per Price To Earning. The ratio of Price To Earning to Price To Sales for Health Care Select is roughly 2.75 . Comparative valuation analysis is a catch-all technique that is used if you cannot value Health Care by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Health Price To Sales vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 4.40 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Health Care |
| = | 1.60 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Health Care Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Health Care, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Health Care will eventually generate negative long term returns. The profitability progress is the general direction of Health Care's change in net profit over the period of time. It can combine multiple indicators of Health Care, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
In seeking to track the performance of the index, the fund employs a replication strategy. SP 500 is traded on NYSEARCA Exchange in the United States.
Health Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Health Care. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Health Care position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Health Care's important profitability drivers and their relationship over time.
Use Health Care in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Health Care position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Health Care will appreciate offsetting losses from the drop in the long position's value.Health Care Pair Trading
Health Care Select Pair Trading Analysis
The ability to find closely correlated positions to Health Care could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Health Care when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Health Care - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Health Care Select to buy it.
The correlation of Health Care is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Health Care moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Health Care Select moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Health Care can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Health Care position
In addition to having Health Care in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Healthcare Thematic Idea Now
Healthcare
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Theme or any other thematic opportunities.
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Check out Your Current Watchlist. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Health Care's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Health Care Select at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Health Care's income statement, its balance sheet, and the statement of cash flows.