Whole Foods Market, Inc. (NASDAQ:WFM) having a set of lucrative trading activity with Paychex, Inc. (NASDAQ:PAYX) and it’s been a clear from an assessment of the charts that traders are now aware of company’s key metrics. In risk evolution, most popular indicator of risk is a statistical measure called beta WFM having beta value of 0.86 and other leading firm’s beta stand at 0.86. Stock market expert use this gauge all the time to get a sense of stocks’ risk profiles.
The Beta coefficient, in terms of finance and investing, is a measure of a stock’s (or portfolio’s) volatility in relation to the rest of the market. Beta is calculated for individual companies using regression analysis. The beta coefficient is a key parameter in CAPM (capital asset pricing model). It measures part of the asset’s statistical variance that cannot be mitigated by the diversification provided by the portfolio of many risky assets, because it is correlated with the return of the other assets that are in the portfolio. To understand range of beta means are likely;
If Beta < 0: Negative Beta - not likely; Beta = 0: Cash in the bank; Beta Between 0 and 1: Low-volatility; Beta = 1: Matching the market; Beta > 1: More volatile than the market.
Whole Foods Market, Inc. (NASDAQ:WFM) shares knocked down -0.43% with final value of $42.07. About 6.64 Million shares changed at hands as compared to average capacity of 8416.66 shares. The company has 0.85 values in price to sale ratio while price to book ratio was recorded as 3.99. The beta factor of WFM is stands at 0.86. Beta is a number that measures the risk of an individual stock relative to the overall market. The overall market is assigned a beta of 1.0. Stocks that are volatile and move more than the overall market have a beta greater than 1 while stocks with price swings less than the market have a beta less than 1.0. The company has 320.01 shares outstanding and 94.50% shares of the company were owned by institutional investors. To dig out factors, always good to learn who else owns shares, the institutional owner includes mutual funds and pension funds are major players. They buy or sell in enormous chunks. Whether a stock is in or out of their favor can have a big effect on its price.
Shares of Paychex, Inc. (NASDAQ:PAYX) showed Dropped movement during previous trade. It traded with the volume of 3.23 Million shares in the last trading session. The stock on Dropped -1.67% and finished the day at $56.69. The one month performance of the stock was -4.29% and it fluctuates about -4.56% in a week. Its 362.45 million shares were outstanding. Having said that, the firm has divers set of ownership, PAYX has institution ownership of 70.80% and Insider Ownership was seen as 10.50%, so it’s been fact that if insider holdings are generally a good thing. Executives who own 30% of a company, for example, are more motivated to make it succeed.
The company offered net profit margin of 39.20%, while its gross profit margin was 70.80%. ROE was recorded as 42.00%, while beta factor was 0.95.