Compare Three Stocks Research Paper Example | Topics and Well Written Essays - 1500 words

Compare Three Stocks - Research 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 endeavor Value is 93.96B. On December 31st, 2010 Abbot reported revenues of 38.44B and net income of 4.55B. It has 1.56B shares outstanding with a market price of $54.09/share. The quarterly harvest of revenue calculated on a year-on-year basis is 13.20%. Amazon.com Inc is a service sector firm and belongs to catalog & mail order industry. The company was founded in 1994 and it is located in United States. The company is works as an online retailer in North America as well as internationally. The company focuses on selection, price and convenience of customers through its website. Moreover, it enables its custome rs to sell their product through Amazon and gives product developers a platform to market their products. As to date, Amazon.coms market capitalization is 86.22B and its Enterprise Value 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 norm annual return for each stock. = Price at December 1st, 2010 = Price at December 1st, 2011 Abbot Laboratories (ABT) Amazon.com 3M Co. c. Which is the luckiest security and which is the least risky based on the SD? (Remember higher the standard diversionary attack the riskier the stock will be ). Standard divergence for the stock is calculated by taking stock price from Jan 1st,2011 to Dec 31st,2011. 3M Co.s standard deviation is 6.61 Amazon.coms standard 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. entertain comment on the best performing stock and the worst performing stock and provide 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 deviati on 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%.