Banner vs Pennant Which Should You Buy?

Banner stocks and pennant stocks are two types of chart patterns that investors use to identify potential trends in the market. Banner stocks are characterized by a sharp price movement followed by a slight consolidation, forming a flag-like pattern. Pennant stocks, on the other hand, show a symmetrical triangle formation where price movements converge towards a point. By recognizing these patterns, investors can make more informed decisions about when to buy or sell a particular stock. Understanding the differences between banner and pennant stocks can help investors capitalize on market opportunities and maximize their returns.

Banner or Pennant?

When comparing Banner and Pennant, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Banner and Pennant.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Banner has a dividend yield of 3.19%, while Pennant has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Banner reports a 5-year dividend growth of 0.96% year and a payout ratio of 40.37%. On the other hand, Pennant reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Banner P/E ratio at 15.73 and Pennant's P/E ratio at 48.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Banner P/B ratio is 1.45 while Pennant's P/B ratio is 6.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Banner has seen a 5-year revenue growth of 0.39%, while Pennant's is 0.78%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Banner's ROE at 9.71% and Pennant's ROE at 13.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $74.47 for Banner and $33.12 for Pennant. Over the past year, Banner's prices ranged from $41.92 to $76.93, with a yearly change of 83.52%. Pennant's prices fluctuated between $12.17 and $37.13, with a yearly change of 205.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.