American Funds The New Economy Fund Class R-2E (RNNEX): fair value, margin of safety and Wheel Score

Is RNNEX undervalued?

RNNEX closed at 77.44 on 5 Nov 2026, more than 30% above the GLS average fair value of 48.86. Only 1 of the 3 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the "below fair value" Wheel Trade Filter keeps names like this under 70.

The average is built from just 3 models (DCF, 10 Cap, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.

RNNEX looks like a fund, note or preferred share rather than an operating company, so the nightly engine files it under Fund / Note: the valuation models are not built for it, and its Wheel Score is capped at 45.

Nine valuation models for RNNEX

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

American Funds The New Economy Fund Class R-2E scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. There is no GLS Moat score for RNNEX: funds, notes and second share lines get none, and so does a company with fewer than two years of accounts on file. The Moat part of the Wheel Score is zero.

Returns on capital are high - ROIC 12.9%, ROE 13.2%, ROA 8.6% - with debt at 0.02 times equity and a free-cash-flow yield of 0.7%.

The dividend yield is high at 9.32% (payout ratio 30%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.

Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 18: No options

No options are listed on American Funds The New Economy Fund Class R-2E in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 18, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.

Volume runs at - a day on a market cap of $50.5B, with a beta of 1.28 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that strong.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for RNNEX in the nightly calendar.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Asset Management

The 12 companies below are the closest to American Funds The New Economy Fund Class R-2E by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare RNNEX with 7 of them   All Financial Services stocks →