Lear Stock Alpha and Beta Analysis

LEA
 Stock
  

USD 140.05  4.19  2.90%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Lear Corporation. It also helps investors analyze the systematic and unsystematic risks associated with investing in Lear over a specified time horizon. Remember, high Lear's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Additionally, see Lear Backtesting, Lear Valuation, Lear Correlation, Lear Hype Analysis, Lear Volatility, Lear History and analyze Lear Performance.
  
Please note that although Lear alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Lear did 0.017276  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Lear Corporation stock's relative risk over its benchmark. Lear has a beta of 1.36  . Let's try to break down what Lear's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Lear will likely underperform.
The current year Price to Book Value is expected to grow to 2.56, whereas Book Value per Share is forecasted to decline to 70.09.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Enterprise Value

11.39 Billion

Lear Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Lear market risk premium is the additional return an investor will receive from holding Lear long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Lear. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Lear's performance over market.
α-0.02   β1.36
90 days against NYA

Lear expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Lear's Buy-and-hold return. Our buy-and-hold chart shows how Lear performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Lear Market Price Analysis

Market price analysis indicators help investors to evaluate how Lear stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Lear shares will generate the highest return on investment. By understating and applying Lear stock market price indicators, traders can identify Lear position entry and exit signals to maximize returns.

Lear Return and Market Media

The median price of Lear for the period between Fri, Sep 2, 2022 and Thu, Dec 1, 2022 is 135.84 with a coefficient of variation of 5.9. The daily time series for the period is distributed with a sample standard deviation of 7.92, arithmetic mean of 134.22, and mean deviation of 6.79. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Exercise or conversion by Marianne Vidershain of tradable sh...09/06/2022
2
Exercise or conversion by Carl Esposito of 18300 shares of L...09/07/2022
3
Sale by Raymond Scott of 6143 shares of Lear Corp09/16/2022
4
EPS Estimate09/30/2022
5
Exercise or conversion by Kathleen Ligocki of tradable share...10/03/2022
6
Lear Will Want To Turn Around Its Return Trends - Nasdaq10/21/2022
7
EPS Reported11/01/2022
8
Acquisition by Marianne Vidershain of 682 shares of Lear Cor...11/16/2022
9
The Executive VP President of Seating of Lear Corporation , ...11/23/2022

About Lear Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Lear or other stocks. Alpha measures the amount that position in Lear has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2019 2020 2021 2022 (projected)
Long Term Debt to Equity0.530.510.560.48
Interest Coverage11.634.567.3611.52

Lear Upcoming Company Events

As portrayed in its financial statements, the presentation of Lear's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Lear's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Lear's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Lear. Please utilize our Beneish M Score to check the likelihood of Lear's management manipulating its earnings.
Upcoming Quarterly Report3rd of February 2022
Next Financial Report6th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End3rd of February 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with Lear

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

Build Diversified Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, see Lear Backtesting, Lear Valuation, Lear Correlation, Lear Hype Analysis, Lear Volatility, Lear History and analyze Lear Performance. Note that the Lear information on this page should be used as a complementary analysis to other Lear's 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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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When running Lear price analysis, check to measure Lear's 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 Lear is operating at the current time. Most of Lear's value examination focuses on studying past and present price action to predict the probability of Lear's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Lear's price. Additionally, you may evaluate how the addition of Lear to your portfolios can decrease your overall portfolio volatility.
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Lear technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Lear technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Lear trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...