A Look at the Health of These Shares: Ventas, Inc. (NYSE:VTR), and PACCAR Inc (NasdaqGS:PCAR)

Watching some historical volatility numbers on shares of Ventas, Inc. (NYSE:VTR), we can see that the 12 month volatility is presently 23.123100. The 6 month volatility is 21.173000, and the 3 month is spotted at 21.489300. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

Amateur investors can sometimes become overwhelmed by the speed and volatility of the stock market. Often times, avoiding big mistakes early on can be the difference between staying in the game or being prematurely forced to the sidelines. One of the biggest mistakes that a new investor can make is not creating a realistic plan. A well-crafted plan will generally include risk tolerance, time horizon, and amount and frequency of investments. Having a clear plan for attaining goals can help the investor stay focused when the terrain gets rocky. Another common mistake for investors is buying high and selling low. Of course, everybody preaches the buy low sell high mantra, but it is much easier said than done. Getting caught up in the day to day market swings can lead the investor to do just the opposite and become a hot stock chaser instead of a disciplined decision maker.

We can now take a quick look at some historical stock price index data. Ventas, Inc. (NYSE:VTR) presently has a 10 month price index of 1.35260. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.33636, the 24 month is 1.14210, and the 36 month is 1.47025. Narrowing in a bit closer, the 5 month price index is 1.11087, the 3 month is 1.08005, and the 1 month is currently 1.08399.

At the time of writing, Ventas, Inc. (NYSE:VTR) has a Piotroski F-Score of 5. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Investors may be interested in viewing the Gross Margin score on shares of Ventas, Inc. (NYSE:VTR). The name currently has a score of 11.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. The Q.i. Value of Ventas, Inc. is 44.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Ventas, Inc. (NYSE:VTR) is 9807.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.  The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Ventas, Inc. (NYSE:VTR) is 11133.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of Ventas, Inc. (NYSE:VTR) over the past 52 weeks is 0.982000.  The 52-week range can be found in the stock’s quote summary. 

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Ventas, Inc. (NYSE:VTR) is -0.024777.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Ventas, Inc. is 0.676361.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Looking at stock market performance over the last few months, new investors may be worried that they might have missed out on some fantastic opportunities. With so much information and data available, they may not even know where to begin when getting into the stock investing arena. Everybody has to start somewhere, and becoming knowledgeable about the basics may help provide the perfect springboard from which to launch. Starting with the basics may help the investor understand the bigger picture which can then be filtered down into specifics. Because there is no magic formula to achieving success in the stock market, investors may have to explore many different strategies before choosing one to run with.

Taking a look at some historical volatility numbers on shares of PACCAR Inc (NasdaqGS:PCAR), we can see that the 12 month volatility is presently 29.377300. The 6 month volatility is 26.544200, and the 3 month is spotted at 27.793300. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

Investors will most likely make plenty of mistakes when dealing with the equity market. Learning from these mistakes is what will propel the individual forward. Those who don’t learn from their mistakes are destined to repeat, and failure might be right around the corner. Every investor strives to spot that uncovered stock before it explodes. However, chasing returns from big winners that have already made their moves may end up leaving the investor befuddled. Even though a stock has been hot, there is no guarantee that it will stay hot. Many investors may get stock tips from friends or colleagues. Of course the tips may be legitimate, but they could just be irrelevant. When it comes to stock picking strategies, investors might be best served to make sure that they have done the actual research themselves. Making trades based on tips or rumors may place the investor in a tough spot for future market success. 

At the time of writing, PACCAR Inc (NasdaqGS:PCAR) has a Piotroski F-Score of 7. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Investors may be interested in viewing the Gross Margin score on shares of PACCAR Inc (NasdaqGS:PCAR). The name currently has a score of 6.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. The Q.i. Value of PACCAR Inc is 24.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of PACCAR Inc (NasdaqGS:PCAR) is 4939.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.  The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of PACCAR Inc (NasdaqGS:PCAR) is 6027.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of PACCAR Inc (NasdaqGS:PCAR) over the past 52 weeks is 0.911000.  The 52-week range can be found in the stock’s quote summary. 

We can now take a quick look at some historical stock price index data. PACCAR Inc (NasdaqGS:PCAR) presently has a 10 month price index of 1.01550. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.01172, the 24 month is 1.03637, and the 36 month is 1.49374. Narrowing in a bit closer, the 5 month price index is 0.97485, the 3 month is 1.16872, and the 1 month is currently 1.11477.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of PACCAR Inc (NasdaqGS:PCAR) is 2.105923.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of PACCAR Inc is 1.979604.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Following all the swirling information about publically traded companies can be quite a task. Every day there may be new pieces of news that emerge about a specific company. The prudent investor is typically able to keep abreast of the information, but most importantly figure out what news is worth paying attention to, and what news should be filtered out. Keeping a sharp eye on earnings reports and fundamental company data can play a big part in picking the right stocks for the portfolio. Once the numbers have been crunched, investors should be able to see things a little bit clearer and know what the general feel for the stock is. Of course there will be stocks that look good after thorough examination but still fail to perform as expected. 

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