American Mutual Fund Buy Hold or Sell Recommendation

CMLFX
 Fund
  

USD 51.51  0.67  1.32%   

Assuming the 90 days horizon and your typical level of risk aversion, our recommendation regarding American Mutual is 'Strong Hold'. Macroaxis provides American Mutual buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CMLFX positions. The advice algorithm takes into account all of American Mutual's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from American Mutual's buy-and-hold perspective. Continue to American Mutual Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual funds such as American and provide practical buy, sell, or hold recommendation based on selected investing horizon and risk tolerance towards American Mutual.

Execute American Mutual Buy or Sell Advice

The American recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on American Mutual. Macroaxis does not own or have any residual interests in American Mutual or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute American Mutual's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell American MutualBuy American Mutual
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

Not AvailableDetails
For the selected time horizon American Mutual has a Risk Adjusted Performance of 0.0777, Jensen Alpha of (0.001089), Total Risk Alpha of (0.003141), Sortino Ratio of (0.011554) and Treynor Ratio of 0.07
Our investment recommendation tool can be used to complement American Mutual trade advice provided by experts. It analyzes the fund's potential to grow against your specific risk preferences and investment horizon. Use American Mutual price to book, three year return, as well as the relationship between the Three Year Return and equity positions weight to ensure your buy or sell decision on American Mutual is adequate.

American Mutual Trading Alerts and Improvement Suggestions

American Mutual is unlikely to experience financial distress in the next 2 years
The fund holds about 9.33% of its assets under management (AUM) in cash

American Mutual Returns Distribution Density

The distribution of American Mutual's historical returns is an attempt to chart the future uncertainty of American Mutual's future price movements. The chart of the probability distribution of American Mutual stock daily returns describes the distribution of returns around its average expected value. We use American Mutual price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Mutual returns is essential to provide solid investment advice for American Mutual stock.
Mean Return0.07Value At Risk-1.82
Potential Upside1.52Standard Deviation1.08
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Mutual historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

American Mutual Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Mutual or American Funds sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Mutual stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.0011
β
Beta against DOW0.83
σ
Overall volatility
1.08
Ir
Information ratio -0.01

American Mutual Volatility Alert

American Mutual has relatively low volatility with skewness of -0.43 and kurtosis of 0.66. However, we advise all investors to independently investigate American Mutual to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Mutual's mutual fund risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact American Mutual's mutual fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

American Mutual Implied Volatility

American Mutual's implied volatility" href="/stock-options/CMLFX/American-Mutual">American Mutual's implied volatility exposes the market's sentiment of American Mutual stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if American Mutual's implied volatility" href="/stock-options/CMLFX/American-Mutual">American Mutual's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that American Mutual stock will not fluctuate a lot when American Mutual's options" href="/stock-options/CMLFX/American-Mutual">American Mutual's options are near their expiration.

American Mutual Fundamentals Vs Peers

Comparing American Mutual's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze American Mutual's direct or indirect competition across all of the common fundamentals between American Mutual and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Mutual or determine the mutual funds which would be an excellent addition to an existing portfolio. Peer analysis of American Mutual's fundamental indicators could also be used in its relative valuation, which is a method of valuing American Mutual by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare American Mutual to competition
FundamentalsAmerican MutualPeer Average
Price to Earning4.37 X6.53 X
Price to Book2.99 X0.74 X
Price to Sales2.02 X0.61 X
One Year Return5.15 %4.15 %
Three Year Return6.96 %3.60 %
Five Year Return7.29 %3.24 %
Ten Year Return10.94 %1.79 %
Net Asset80 B4.11 B
Last Dividend Paid0.220.65
Cash Position Weight9.33 %10.61 %
Equity Positions Weight90.52 %63.90 %

About American Mutual Buy or Sell Advice

When is the right time to buy or sell American Mutual? Buying financial instruments such as American Mutual Fund isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although American Mutual investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having American Mutual 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 Currency Thematic Idea Now

Currency
Currency Theme
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency theme has 40 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 Currency Theme or any other thematic opportunities.
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Continue to American Mutual Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the American Mutual information on this page should be used as a complementary analysis to other American Mutual'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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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When running American Mutual price analysis, check to measure American Mutual'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 American Mutual is operating at the current time. Most of American Mutual's value examination focuses on studying past and present price action to predict the probability of American Mutual's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Mutual's price. Additionally, you may evaluate how the addition of American Mutual to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between American Mutual's value and its price as these two are different measures arrived at by different means. Investors typically determine American Mutual value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Mutual's 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.