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Is PGIM Jennison Mid-Cap Growth A (PEEAX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is PGIM Jennison Mid-Cap Growth A (PEEAX - Free Report) . PEEAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
PEEAX is a part of the PGIM family of funds, a company based out of Providence, RI. PGIM Jennison Mid-Cap Growth A debuted in December of 1996. Since then, PEEAX has accumulated assets of about $755.82 million, according to the most recently available information. The fund's current manager, Benjamin Bryan, has been in charge of the fund since July of 2018.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 9.91%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 8.83%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of PEEAX over the past three years is 24.41% compared to the category average of 17.87%. Looking at the past 5 years, the fund's standard deviation is 21.24% compared to the category average of 15.69%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.05, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a negative alpha over the past 5 years of -1, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
This fund is currently holding about 84.44% stock in stocks, with an average market capitalization of $21.47 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Industrial Cyclical
Services
This fund's turnover is about 51%, so the fund managers are making more trades per year than the comparable average.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, PEEAX is a load fund. It has an expense ratio of 1.05% compared to the category average of 1.14%. So, PEEAX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, PGIM Jennison Mid-Cap Growth A ( PEEAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about PEEAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is PGIM Jennison Mid-Cap Growth A (PEEAX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is PGIM Jennison Mid-Cap Growth A (PEEAX - Free Report) . PEEAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
PEEAX is a part of the PGIM family of funds, a company based out of Providence, RI. PGIM Jennison Mid-Cap Growth A debuted in December of 1996. Since then, PEEAX has accumulated assets of about $755.82 million, according to the most recently available information. The fund's current manager, Benjamin Bryan, has been in charge of the fund since July of 2018.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 9.91%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 8.83%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of PEEAX over the past three years is 24.41% compared to the category average of 17.87%. Looking at the past 5 years, the fund's standard deviation is 21.24% compared to the category average of 15.69%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.05, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a negative alpha over the past 5 years of -1, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
This fund is currently holding about 84.44% stock in stocks, with an average market capitalization of $21.47 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Industrial Cyclical
- Services
This fund's turnover is about 51%, so the fund managers are making more trades per year than the comparable average.Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, PEEAX is a load fund. It has an expense ratio of 1.05% compared to the category average of 1.14%. So, PEEAX is actually cheaper than its peers from a cost perspective.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, PGIM Jennison Mid-Cap Growth A ( PEEAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Want even more information about PEEAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.