Should Investors Hold Tight To Alliance Data Systems Corporation (NYSE:ADS) In Their Porfolio With Sales Growth of 0.05385?

Alliance Data Systems Corporation (NYSE:ADS) have seen a year over year change of sales growth of 0.05385.  The 9829202 market value company based out of United States of America is an important player in the Support Services sector.

While sales growth can be a key driver for a company’s stock performance, there are many other factors to consider as well.  Here we’ll take a look at several other notable indicators.

Alliance Data Systems Corporation (NYSE:ADS)  closed the recent session at 180.440000 with a market value of $9829202.

Investors are often faced with difficult decisions when trading the equity market. Sometimes, the decision to sell a certain stock may be just as important as the decision to buy the stock in the first place. Individual investors may have done the research, had some good fortune, and are now dealing with a big winner in the portfolio. Even though a stock has had a big run, it may be time to unload and take some profits. Holding on to a winner too long can eat into profits that may have been better spent getting into another promising name. On the flip side, investors may have trouble letting go of an underperforming portfolio loser. The emotional attachment to a stock can cause the investor to hold onto a stock for way too long. Maybe the stock was thoroughly researched, but it just keeps going lower. Being able to cut the ties instead of waiting for a bounce back may be beneficial for portfolio health in the long run.

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 0.14207 for Alliance Data Systems Corporation (NYSE:ADS). The one year Growth EBIT ratio stands at 0.27679 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number holds at 0.18824 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 0.12049. The one year growth in Net Profit after Tax is 0.79830 and lastly sales growth was 0.05385.

Investors might be looking at various types of stocks that can be added to the portfolio. Selecting a wider range of equities may help the portfolio withstand prolonged market turmoil. Growth stocks typically have the potential to produce profit growth and above average revenues. Growth companies may reinvest a large amount of earnings back into the business. Fast growing companies can be attractive, but it may be important to verify whether or not shares are valued properly before buying in. Some investors may choose to select cyclical stocks. Cyclicals include companies that are very sensitive to the overall swings of the economy. Investors might also turn to adding foreign stocks to the portfolio. Keeping the portfolio diversified may end up being an important factor for longer-term investing success.

Alliance Data Systems Corporation (NYSE:ADS) has a current suggested portfolio ownership target rate of 0.02730 (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 31.361900 (decimal), the 6-month at 29.572000 and the 12-month at 26.941400.  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: Alliance Data Systems Corporation (NYSE:ADS) has Return on Invested Capital (ROIC) of 0.120250, with a 5-year average of 0.129378 and an ROIC quality score of 5.146236. 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, Alliance Data Systems Corporation (NYSE:ADS) has a debt to equity ratio of 10.74878 and a Free Cash Flow to Debt ratio of 0.108744.  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 14.89143.  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.  Alliance Data Systems Corporation’s ND to MV current stands at 2.139207. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Figuring out when to exit a certain position can be just as important as deciding which stocks to buy in the first place. Many investors will end up holding onto a loser for far too long. The emotional attachment to a particular stock may keep the investor from making the decision to sell when necessary. On the other side of the coin, investors may hold onto a winner for way too long hoping for further gains. Investors may have to come up with a specific plan for what to do in these situations. Planning ahead may help ease the burden of making the tough portfolio decisions.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.