Time to quit on Equity Residential is now
 | By Ellen Johnson | Macroaxis Story |
This story will sum up Equity Residential. I will cover the possibilities of making Equity Residential into a steady grower in September. Equity Residential barely shadows market. The returns on investing in Equity Residential and the market returns of the last few months appear uncorrelated to each other. The record of invariable forward-looking signals of the enterprise connotes short term price swing for management of the enterprise. What is Equity Residential Target Price Odds to finish over Current Price? In regard to normal probability distribution, the odds of Equity Residential to move above current price in 30 days from now is about 7.92%. The Equity Residential probability density function shows the probability of Equity Residential Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, Equity Residential has beta of 0.1744 suggesting as returns on market go up, Equity Residential average returns are expected to increase less than the benchmark. However during bear market, the loss on holding Equity Residential will be expected to be much smaller as well. Additionally, the company has an alpha of 0.0489 implying that it can potentially generate 0.0489% excess return over S&P 500 after adjusting for the inherited market risk (beta).
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Reviewed by Michael Smolkin
Equity Residential average rating is Hold from 17 analysts. As of 07 of August Equity Residential shows Coefficient Of Variation of 1666.89, Downside Deviation of 1.05 and Mean Deviation of 0.7111. Equity Residential technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm future prices. In plain English you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum or the prices will eventually revert. We found nineteen technical drivers for Equity Residential which can be compared to its rivals. Please confirm Equity Residential Information Ratio, Potential Upside as well as the relationship between Potential Upside and Kurtosis to decide if Equity Residential is priced favorably providing market reflects its regular price of 79.78 per share. Given that Equity Residential has Jensen Alpha of 0.0489, we urge you verify Equity Residential prevailing market performance to make sure the company can sustain itself at future point.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Equity Residential. Your research has to be compared to or analyzed against Equity Residential's peers to derive any actionable benefits. When done correctly, Equity Residential's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Equity Residential.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Equity Residential. In general, sophisticated investors focus on analyzing Equity Residential stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Equity Residential's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Equity Residential's intrinsic value. In addition to deriving basic predictive indicators for Equity Residential, many experienced traders also check how macroeconomic factors affect Equity Residential price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Equity Residential's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Equity Residential's Liquidity
Equity Residential financial leverage refers to using borrowed capital as a funding source to finance Equity Residential ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Equity Residential financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Equity Residential's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Equity Residential's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Equity Residential's total debt and its cash.
Equity Residential Gross Profit
Equity Residential Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Equity Residential previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Equity Residential Gross Profit growth over the last 10 years. Please check Equity Residential's gross profit and other fundamental indicators for more details.
A Deeper Analysis
The current investor indifference towards the small price fluctuations of Equity Residential could raise concerns from investors as the firm closed today at a share price of 77.92 on 1101205.000 in volume. The company directors and management did not add any value to Equity Residential investors in July. However, most investors can still diversify their portfolios with Equity Residential to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.9422. The very small Stock volatility is a good signal to investors with longer term investment horizons. Equity Residential makes 2.64b revenue. Equity Residential is selling for under 79.78. That is 0.81 percent up. Day Low was 77.92. Equity Residential Price to Book Value is increasing over the last 4 years. The previous year value of Equity Residential Price to Book Value was 2.90. Moreover, Equity Residential Issuance Repayment of Debt Securities is relatively stable at the moment. In closing, our overall 'Buy/Hold/Sell' recommendation on the enterprise is Strong Hold. We believe Equity Residential is fairly valued with below average probability of distress for the next two years.
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