Franklin Electric Co., Inc. (NasdaqGS:FELE)’s Target Porfolio Weight Shifts to 0.04290 After 0.15399 Sales Growth

Potential Investors often look for key drivers that can move a stock in a positive direction.  One of those is sales growth.  Franklin Electric Co., Inc. (NasdaqGS:FELE) of the Industrial Engineering sector, witnessed sales growth of  0.15399 year over year. The firm has a traded value of 7189 and has its headquarters in United States of America.

Individual investors may tend to become more bullish at market tops and more bearish at the bottoms. This goes against the buy low sell high mantra that is widely preached in the investing community. The two emotions that come into play here are greed and fear. Investors tend to get greedy when they see stocks flying to new highs. It can be very tempting to get in on a name that has been running hot for a time. On the other side of the coin, investors often get fearful when the market is tanking. The fear of losing becomes prevalent when this occurs, and investors may be tempted to sell like the rest. Although this goes against logic, many investors will still end up buying high and selling low.

Franklin Electric Co., Inc. (NasdaqGS:FELE)  closed the recent session at 52.050000 with a market value of $2408557.

Even though the stock market can seem erratic and unpredictable, investors may be able to take some steps to help combat the chaos. One thing that investors have the ability to do is create an overall plan and stick to it. This may be one of the single most important factors in achieving success in the stock market. Of course, if something doesn’t seem to be working over an extended period of time, then maybe some action may need to be taken and the plan should be adjusted. Scrapping a plan too early may bring about a lot of unnecessary worry and confusion. Staying disciplined and keeping the proper perspective might help the investor better position themselves on the front lines. 

Turning to some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations. This number stands at 0.92400 for Franklin Electric Co., Inc. (NasdaqGS:FELE). The one year Growth EBIT ratio stands at 0.19409 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number holds at 0.14506 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.50509. The one year growth in Net Profit after Tax is 0.35443 and lastly sales growth was 0.15399.

Investors often have to calculate risk/reward scenarios when navigating the equity market. Keeping track of alternatives and gauging the likelihood of certain outcomes can help with designing a legitimate strategy. When all the research and planning has been completed, there may come a time when the investor has to make a decision and get ready to take some action. There will obviously be some trades that work out great and others that don’t. Accepting the fact that this is part of the process can help keep the investor focused on the next trade instead of lamenting the past. 

Franklin Electric Co., Inc. (NasdaqGS:FELE) has a current suggested portfolio ownership target rate of 0.04290 (as a decimal) ownership.  Target weight is the volatility adjusted recommended position size for a stock in your portfolio.  The maximum target weight is 7% for any given stock.  The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly.  The more recent volatility of a stock, the lower the target weight will be.  The 3-month volatility stands at 24.653100 (decimal), the 6-month at 30.052700 and the 12-month at 26.121500.  This is the normal returns and standard deviation of the stock price over three months annualized.

Taking look at some key returns and margins data we can note the following: Franklin Electric Co., Inc. (NasdaqGS:FELE) has Return on Invested Capital (ROIC) of 0.276423, with a 5-year average of 0.250466 and an ROIC quality score of 7.329708. Why is ROIC important? It’s one of the most fundamental metrics in determining the value of a given stock. It helps potential investors determine if the firm is using it’s invested capital to return profits.

Changing lanes and looking at some Debt ratios, Franklin Electric Co., Inc. (NasdaqGS:FELE) has a debt to equity ratio of 0.28119 and a Free Cash Flow to Debt ratio of 0.513695.  This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated.  In terms of Net Debt to EBIT, that ratio stands at 1.10116.  This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt.  The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio.  Franklin Electric Co., Inc.’s ND to MV current stands at 0.061108. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Stock market investors may be taking some time to review portfolio allocation. Rebalancing the portfolio may be necessary for some but not for others. Rebalancing the portfolio may help provide a strategy for when the market becomes highly volatile. This process may also help keep the investor buying low and selling high. Investors may also be looking at some different stocks to explore in the next few months. This may include reviewing some foreign markets or some new sectors that were previously not included in the stock portfolio. Completing all the necessary research is typically a good way to start building a more comprehensive pool of diversified stocks.    

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