National Stock Buy Hold or Sell Recommendation

NGG
 Stock
  

USD 60.92  0.78  1.26%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding National Grid Transco is 'Buy'. Macroaxis provides National Grid buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NGG positions. The advice algorithm takes into account all of National Grid's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from National Grid's buy-and-hold perspective. Additionally, see National Grid 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 companies such as National and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards National Grid Transco.

Execute National Grid Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell National GridBuy National Grid
Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon National Grid Transco has a Risk Adjusted Performance of (0.08), Jensen Alpha of (0.17), Total Risk Alpha of (0.18) and Treynor Ratio of (0.13)
Macroaxis provides unbiased advice on National Grid Transco that should be used to complement current analysts and expert consensus on National Grid. Our investment recommendation engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure National Grid Transco is not overpriced, please verify all National Grid Transco fundamentals, including its current ratio, total asset, and the relationship between the cash and equivalents and earnings per share . Given that National Grid Transco has a number of shares shorted of 357.29 K, we recommend you to check National Grid market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

National Grid Trading Alerts and Improvement Suggestions

National Grid generated a negative expected return over the last 90 days
The company has 46.46 B in debt with debt to equity (D/E) ratio of 1.95, which is OK given its current industry classification. National Grid Transco has a current ratio of 0.72, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist National Grid until it has trouble settling it off, either with new capital or with free cash flow. So, National Grid's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like National Grid Transco sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for National to invest in growth at high rates of return. When we think about National Grid's use of debt, we should always consider it together with cash and equity.
National Grid has a strong financial position based on the latest SEC filings
Latest headline from news.google.com: Snowstorm Drives Big Gains for Natural Gas Forwards, while Market Looks Ahead to Freeports Return - Natural Gas Intelligence

National Grid current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. National analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. National analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Recommendation Mean2.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

National Grid Returns Distribution Density

The distribution of National Grid's historical returns is an attempt to chart the uncertainty of National Grid's future price movements. The chart of the probability distribution of National Grid stock daily returns describes the distribution of returns around its average expected value. We use National Grid Transco price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of National Grid returns is essential to provide solid investment advice for National Grid.
Mean Return-0.13Value At Risk-3.84
Potential Upside3.33Standard Deviation2.19
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of National Grid 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.

National Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as National Grid is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading National Grid Transco backward and forwards among themselves. National Grid's institutional investor refers to the entity that pools money to purchase National Grid's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zions Trust National AssociationCommon Shares29020 K
Zions Bancorporation NaCommon Shares61.3 KM
Zions Bancorporation NaCommon Shares53 K4.1 M
Zions Bancorporation NaCommon Shares43.4 K3.1 M
Zions Bancorporation NaCommon Shares40.7 K2.4 M
Zions Bancorporation NaCommon Shares37.9 K2.4 M
Zions Bancorporation NaCommon Shares34 KM
Note, although National Grid's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

National Grid Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing(7.55 B)(1.36 B)(1.61 B)1.5 B7.77 B8.38 B
Net Cash Flow from Investing4.47 B(3.03 B)(3.19 B)(5.12 B)(14.01 B)(14.38 B)
Net Cash Flow from Operations9.21 B8.71 B9.33 B8.92 B6.27 B5.87 B

National Grid 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 National Grid or Utilities 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 National Grid'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 National 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
-0.17
β
Beta against DOW1.10
σ
Overall volatility
2.16
Ir
Information ratio -0.08

National Grid Volatility Alert

National Grid Transco exhibits very low volatility with skewness of 0.54 and kurtosis of 1.31. However, we advise investors to further study National Grid Transco technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure National Grid's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact National Grid's stock 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.

National Grid Fundamentals Vs Peers

Comparing National Grid'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 National Grid's direct or indirect competition across all of the common fundamentals between National Grid and the related equities. This way, we can detect undervalued stocks with similar characteristics as National Grid or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of National Grid's fundamental indicators could also be used in its relative valuation, which is a method of valuing National Grid by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare National Grid to competition
FundamentalsNational GridPeer Average
Return On Equity9.99 %(0.31) %
Return On Asset3.24 %(0.14) %
Profit Margin12.75 %(1.27) %
Operating Margin22.79 %(5.51) %
Current Valuation82.34 B16.62 B
Shares Outstanding723.42 M571.82 M
Shares Owned by Insiders0.02 %10.09 %
Shares Owned by Institutions3.78 %39.21 %
Number of Shares Shorted357.29 K4.71 M
Price to Earning21.35 X28.72 X
Price to Book2.37 X9.51 X
Price to Sales2.43 X11.42 X
Revenue18.45 B9.43 B
Gross Profit18.45 B27.38 B
EBITDA5.61 B3.9 B
Net Income2.18 B570.98 M
Cash and Equivalents3.35 B2.7 B
Cash per Share4.59 X5.01 X
Total Debt46.46 B5.32 B
Debt to Equity1.95 %48.70 %
Current Ratio0.73 X2.16 X
Book Value Per Share26.08 X1.93 K
Cash Flow from Operations6.27 B971.22 M
Short Ratio0.53 X4.00 X
Earnings Per Share2.89 X3.12 X
Number of Employees29.29 K18.84 K
Beta0.23-0.15
Market Capitalization44.77 B19.03 B
Total Asset62.93 B29.47 B
Retained Earnings20.83 B9.33 B
Working Capital(2.14 B)1.48 B
Current Asset6.42 B9.34 B
Current Liabilities8.56 B7.9 B

National Grid Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as National . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About National Grid Buy or Sell Advice

When is the right time to buy or sell National Grid Transco? Buying financial instruments such as National Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the 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. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable2.21 B2.17 B3.11 B2.51 B
Receivables2.58 B2.53 B3.29 B2.82 B

Use Investing Ideas to Build Portfolios

In addition to having National Grid 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 Biotech Thematic Idea Now

Biotech
Biotech Theme
Companies specialized in biotechnology production and delivery of pharmaceuticals services. The Biotech 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 Biotech Theme or any other thematic opportunities.
View All  Next Launch
Additionally, see National Grid 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 National Grid Transco information on this page should be used as a complementary analysis to other National Grid'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Complementary Tools for National Stock analysis

When running National Grid Transco price analysis, check to measure National Grid'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 National Grid is operating at the current time. Most of National Grid's value examination focuses on studying past and present price action to predict the probability of National Grid's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move National Grid's price. Additionally, you may evaluate how the addition of National Grid to your portfolios can decrease your overall portfolio volatility.
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Is National Grid's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of National Grid. If investors know National will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about National Grid listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.58
Market Capitalization
45.1 B
Quarterly Revenue Growth YOY
0.36
Return On Assets
0.031
Return On Equity
0.13
The market value of National Grid Transco is measured differently than its book value, which is the value of National that is recorded on the company's balance sheet. Investors also form their own opinion of National Grid's value that differs from its market value or its book value, called intrinsic value, which is National Grid's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because National Grid's market value can be influenced by many factors that don't directly affect National Grid's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between National Grid's value and its price as these two are different measures arrived at by different means. Investors typically determine National Grid value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, National Grid'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.