Free

Comment on stock/analyst report - Essay Example

Comments (0) Cite this document
Summary
The report about United Technologies lacks fundamental analysis that can offer insight on the performance of the company and comparison to competitors. The report should include a structural analysis that dictates the organization’s competitors, market environment, and…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.1% of users find it useful
Comment on stock/analyst report
Read TextPreview

Extract of sample "Comment on stock/analyst report"

Stock analysis report: al affiliation:  Stock analysis report The report about United Technologies lacks fundamental analysis that can offer insight on the performance of the company and comparison to competitors. The report should include a structural analysis that dictates the organization’s competitors, market environment, and comparative advantage. If the report had done a fundamental analysis, it would be possible to evaluate the stock market price of the organization. The idea is that stock exchange often place the intrinsic value of a stock incorrectly compared to the equilibrium value. If the report analyzed financial reports of united technologies in correlation with other companies, it would, be possible to determine the market value and compare it to the intrinsic value of the organization.
The report offers a fuzzy indication of the real value of the organization’s stock because it vaguely incorporates vital elements used to evaluate it. The factors include; earnings, profit margins, return on equity, price to earnings ratio, and price to book ratio. Investors often look for the earnings per share to assist in making a decision on whether the organization realizes profits in the future. The earnings per share included are not comparative with leading competitors against United Technologies. Instead, the comparison is on the revenues of competitors alone, which is not sufficient. The non-comparative nature makes it intricate for investors to evaluate long-term returns after purchasing the shares.
The profit margins included are over a period, but are not indicative of the net profit margins (New York Stock Exchange, 2015). The non-inclusion of net profit margin makes it intricate to determine the earnings realized upon every dollar of the organization revenue. The return on equity, price to earnings ratio, and price to book ratio included in the report do not offer comparative analysis. Therefore, it is intricate for an investor to determine whether it is viable to purchase the stocks. The included ratios focus on United Technologies, and comparison offered only relate to the revenue earnings.
The necessary information is the determination of the actual value of United Technologies stock and the market value. If the organizations intrinsic value is below the market value, then an investor can purchase the stock and gain profits when the intrinsic value hits the market value. On the contrast, if the market value is above the intrinsic value, then shareholders should cash out on the stocks and realize profits before the market value reduces to the intrinsic stock value.

References
Exchange, N. Y. (2015). UNITED TECH NYSE-UTX. New York, NY: Value Line Publishing LLC. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Comment on stock/analyst report Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Comment on stock/analyst report Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/finance-accounting/1692923-comment-on-stockanalyst-report
(Comment on stock/Analyst Report Essay Example | Topics and Well Written Essays - 250 Words)
Comment on stock/Analyst Report Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/finance-accounting/1692923-comment-on-stockanalyst-report.
“Comment on stock/Analyst Report Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/finance-accounting/1692923-comment-on-stockanalyst-report.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Comment on stock/analyst report

Stock Price Reaction to Merger Announcements: an Empirical Note on German Markets

...announcements of the process are made, or failing that – relevant events that might impact the management or operations of either company. The complex calculus for analyzing merger consequences would logically also involve a documentation of stock prices for the competitors of both the acquiring, and acquired company. This could provide valuable information in terms of the future business landscape where in the composite corporate entity will be forced to do business. Based on stock price trends of competitors, the seasoned financial analyst should be able to predict whether the new firm resulting from the merger has the potential to remain competitive at all. Much of this of course, is...
12 Pages(3000 words)Essay

Analyst Management Summary Report of Vodafone UK

...?Analyst Management Summary Report of Vodafone UK Table of Contents Overview 3 Company Profile 3 Financial Summary 4 Financial Ratio Analysis 5 Company Growth and Strategy 7 Market Competition 8 Risks 11 Recommendation 11 References 13 Appendices 15 1.Income Statement 15 2.Balance Sheet 17 3.Financial Ratios 20 Overview This paper would attempt to assess the financial health of Vodafone Group PLC, by evaluating its financial performance, its market position and its future strategy. Such a thorough assessment and comparative study with one of its peers, namely France Telecom-Orange, would enable one to recommend whether or not to make an investment of ?1Million in the stocks of Vodafone. Company Profile Vodafone is a global... at:...
8 Pages(2000 words)Essay

Analyst report Uniliver PLC

.... This report will provide an overview of the company as well as financial analysis of Unilever for the fiscal year 2011 in order to determine whether the company is worth investing ?1 million. One of the mail analytic tools used in the paper is ratio analysis. Company Profile: Unilever Unilever was founded in the 1890s, but the actual Unilever brand was not created until 1930. The company is dedicated to the nutritional and well being industry. The firm has over 400 branded products. Some of the most popular brands of the company are Dove, Knorr, Lipton, Hellmann, and Axe. The corporate vision of the company is, “Helping people to look good, feel good and get more out of life” (Unilever, 2012). One of the keys to the...
4 Pages(1000 words)Essay

History of Race in Science

5 Pages(1250 words)Essay

Investment appraisal

...Valuation Dividend growth model Based on the above valuation models, an analyst predicts the equity value of the company by selecting any one of the above mentioned models which appears to be apt in the circumstances. Finally the investor must make an investment decision based on the calculated value of equity in the above step. This decision involves investment recommendation to the investor whether it is financially feasible to invest in the stock of the company being valued or not. If the analyst concludes that the equity value of the company is as such which is significantly greater than the current book value of the company, then it represents that the company will reap benefits in...
6 Pages(1500 words)Essay

SLP4

3 Pages(750 words)Coursework

Systems Analyst

...Systems Analyst Systems Analyst A system analyst is the brainpower behind guiding an organization through developing an information system. He always matches the core objectives of the information system with the goals and pertinent objectives of the organization. The system analyst has a number of roles, all geared towards having an efficiently operating framework. He analyses the facts about business activities and studies the business operations in depth to ascertain its requirements. Further, the analyst determines the design of a system according to the prescribed business requirements. He is the person in charge of and responsible for designing the...
1 Pages(250 words)Essay

Crime Analyst

...at knowing how to combat the dynamic nature of modern-day crime. 1. A crime analyst’s responsibilities include the compiling, studying, analyzing, interpreting and presenting data collected from crime incidence reports. It includes going through all the reports and from them identifying and picking out any patterns, trends and features of crime that are then mapped out not only geographically but also socially and logically with the intention of enabling the police come up with the most effective methods of combating it and fighting such crime. Once all these data is analyzed and interpreted into useful information from which decisions can be made, the crime analyst...
4 Pages(1000 words)Assignment

Stock Simulation Report

... Stock Simulation Report Portfolio is defined as collection of assets which a particular company is trading with. The firm enters to market trading with two assets; Good year tires and Rubber which they intended to generate revenue from it. The first item, (GT) in which 100 units were bought at price of 27.44 yield a return of (-2,754.00) after deducting commission and other legal charges. The other asset, (GPN) of 100 units produce (-7,274.00) for the period it was in a stock exchange market. The results obtained triggers the need to study why trade on certain items in the market. Marginal requirement directs a person regarding which items to trade with. This is the amount of capital needed to do the business. It is determined... to try...
2 Pages(500 words)Essay

Financial Situation of the Yule Catto and Company PLC

...in 2009.1 This paper seeks to analyze the stock of YULC whether the company is worth investing into by examining the company’s financial ratios of performance, liquidity, solvency position, market ratios and dividends for the past five years. Comparisons with Craigielaw plc and industry averages will also be made to enhance analysis. This paper will relate with the analysts’ estimate and projection on the company’s stock and what they are saying about company and any relevant news about the status of its stock. In addition, this paper will also comment on company’s strategy and forward planning, prepare questions that could be asked from the...
11 Pages(2750 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Comment on stock/analyst report for FREE!

Contact Us