Friday, April 26, 2019
Compare Three Stocks Research Paper Example | Topics and Well Written Essays - 1500 words
Compare Three Stocks - search Paper ExampleIts drug portfolio contains medicine of almost every discovered disease present on this earth. It is a renowned player in the drug industry and a benchmark for its practices as well. abbot primarily serves retailers, wholesalers, hospitals and health care facilitators. As to date, Abbots market capitalization is 84.26B and its Enterprise look on is 93.96B. On December 31st, 2010 Abbot inform revenues of 38.44B and net income of 4.55B. It has 1.56B shares outstanding with a market damage of $54.09/share. The quarterly growth of revenue calculated on a year-on-year basis is 13.20%. Amazon.com Inc is a service sector debauched and belongs to catalog & mail order industry. The company was founded in 1994 and it is located in United States. The company is whole kit and boodle as an online retailer in North America as well as internationally. The company focuses on selection, price and convenience of customers through its website. Moreove r, it enables its customers to sell their product through Amazon and gives product developers a plan to market their products. As to date, Amazon.coms market capitalization is 86.22B and its Enterprise measure out is 85.50B. On December 31st, 2010 Amazon.com reported revenues of 43.59B and net income of 870.00 M. It has 454.75M shares outstanding with share price of $189.59/share. ... As to date, 3M Co.s market capitalization is 56.34B and its Enterprise Value is 59.04B. On December 31st, 2010 Amazon.com reported revenues of 29.23B and net income of 4.26B. It has 700.84M shares outstanding with share price of $80.39/share. The quarterly growth of revenue calculated on a year-on-year basis is 9.60%. b. Calculate the average annual impart for each stock. = charge at December 1st, 2010 = Price at December 1st, 2011 Abbot Laboratories (ABT) Amazon.com 3M Co. c. Which is the riskiest security and which is the least(prenominal) risky found on the SD? (Remember higher the measuring stick deviation the riskier the stock will be). Standard deviation for the stock is calculated by taking stock price from Jan 1st,2011 to Dec 31st,2011. 3M Co.s tired deviation is 6.61 Amazon.coms stock(a) deviation is 19.41 Abbot Laboratorys standard deviation is 2.771 The riskiest security in terms of standard deviation is Amazon.com with 19.41. The stock price ranged from as low as $160.59 to as high as 246.71. The least risky security is Abbot Laboratory with more or less stable prices. The highest in year 2011 was price was $55.61 and lowest price was $45.07. 3M Co.s stock had standard deviation of 6.61 with highest price of $98.19 and lowest price of 68.63. d. Please comment on the best performing stock and the worst performing stock and leave behind some justification. The best performing stock for a risk adverse investor would be Abbot Laboratories. The earnings have been stable over the year. However, for a risk taker it would be Amazon.com with quarterly revenue growth year-on-year of 43.90%. The standard deviation is high and the return associated with it is also high. For an investor who has held the stock for the whole year would enjoy a return of 10.58%.