Prosperity Bancshares Profitability Analysis

PB Stock  USD 65.78  0.72  1.11%   
Based on Prosperity Bancshares' profitability indicators, Prosperity Bancshares may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in April. Profitability indicators assess Prosperity Bancshares' ability to earn profits and add value for shareholders.
For Prosperity Bancshares profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Prosperity Bancshares to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Prosperity Bancshares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Prosperity Bancshares's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Prosperity Bancshares over time as well as its relative position and ranking within its peers.
  
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Is Prosperity Bancshares' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Prosperity Bancshares. If investors know Prosperity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Prosperity Bancshares listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Prosperity Bancshares is measured differently than its book value, which is the value of Prosperity that is recorded on the company's balance sheet. Investors also form their own opinion of Prosperity Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Prosperity Bancshares' 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 Prosperity Bancshares' market value can be influenced by many factors that don't directly affect Prosperity Bancshares' 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 Prosperity Bancshares' value and its price as these two are different measures arrived at by different means. Investors typically determine if Prosperity Bancshares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prosperity Bancshares' 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.

Prosperity Bancshares Price To Earning vs. Number Of Shares Shorted Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Prosperity Bancshares's current stock value. Our valuation model uses many indicators to compare Prosperity Bancshares value to that of its competitors to determine the firm's financial worth.
Prosperity Bancshares is considered to be number one stock in number of shares shorted category among related companies. It is regarded fifth in price to earning category among related companies . The ratio of Number Of Shares Shorted to Price To Earning for Prosperity Bancshares is about  173,571 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Prosperity Bancshares by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Prosperity Bancshares' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Prosperity Bancshares' earnings, one of the primary drivers of an investment's value.

Prosperity Price To Earning vs. Number Of Shares Shorted

Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.

Prosperity Bancshares

Shares Shorted

 = 

Shorted by Public

+

by Institutions

 = 
2.34 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
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.

Prosperity Bancshares

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
13.51 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.

Prosperity Price To Earning Comparison

Prosperity Bancshares is currently under evaluation in price to earning category among related companies.

Prosperity Bancshares Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Prosperity Bancshares, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Prosperity Bancshares will eventually generate negative long term returns. The profitability progress is the general direction of Prosperity Bancshares' change in net profit over the period of time. It can combine multiple indicators of Prosperity Bancshares, 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.
Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. Prosperity Bancshares, Inc. was founded in 1983 and is based in Houston, Texas. Prosperity Bancshares operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 3592 people.

Prosperity Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Prosperity Bancshares. 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 Prosperity Bancshares 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 Prosperity Bancshares' important profitability drivers and their relationship over time.

Prosperity Bancshares Profitability Trends

Prosperity Bancshares profitability trend refers to the progression of profit or loss within a business. An upward trend means that Prosperity Bancshares' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Prosperity Bancshares' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Use Prosperity Bancshares 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 Prosperity Bancshares 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 Prosperity Bancshares will appreciate offsetting losses from the drop in the long position's value.

Prosperity Bancshares Pair Trading

Prosperity Bancshares Pair Trading Analysis

The ability to find closely correlated positions to Prosperity Bancshares could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Prosperity Bancshares 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 Prosperity Bancshares - 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 Prosperity Bancshares to buy it.
The correlation of Prosperity Bancshares 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 Prosperity Bancshares moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Prosperity Bancshares 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 Prosperity Bancshares 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Prosperity Bancshares position

In addition to having Prosperity Bancshares 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 Rentals Thematic Idea Now

Rentals
Rentals Theme
Companies providing rental and leasing services to public and business. The Rentals theme has 47 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 Rentals Theme or any other thematic opportunities.
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When determining whether Prosperity Bancshares offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Prosperity Bancshares' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Prosperity Bancshares Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Prosperity Bancshares Stock:
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For information on how to trade Prosperity Stock refer to our How to Trade Prosperity Stock guide.
Note that the Prosperity Bancshares information on this page should be used as a complementary analysis to other Prosperity Bancshares' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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When running Prosperity Bancshares' price analysis, check to measure Prosperity Bancshares' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Prosperity Bancshares is operating at the current time. Most of Prosperity Bancshares' value examination focuses on studying past and present price action to predict the probability of Prosperity Bancshares' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Prosperity Bancshares' price. Additionally, you may evaluate how the addition of Prosperity Bancshares to your portfolios can decrease your overall portfolio volatility.
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To fully project Prosperity Bancshares' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Prosperity Bancshares 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 Prosperity Bancshares' income statement, its balance sheet, and the statement of cash flows.
Potential Prosperity Bancshares investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Prosperity Bancshares investors may work on each financial statement separately, they are all related. The changes in Prosperity Bancshares's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Prosperity Bancshares's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.