Chindata Group has a performance score of 2 on a scale of 0 to 100. The company exhibits a Beta (market volatility) of 0.0663, indicating relatively insignificant fluctuations compared to the market. As market returns increase, Chindata Group's returns are expected to rise less than the market. Conversely, during a bear market, the loss on holding Chindata Group is expected to be smaller.
While it's crucial to consider Chindata Group Holdings' historical returns, it's equally important to be realistic about the equity's current trending patterns. Our primary approach to predicting the future performance of any stock involves evaluating the business as a whole, along with its past performance, including all available fundamental and technical indicators.
By examining Chindata Group Holdings' technical indicators, you can currently assess whether the expected return of 0.0373% will be sustainable in the future. Chindata Group Holdings currently presents a risk of 1.2%.
Please verify Chindata Group Holdings' coefficient of variation, Jensen's alpha, potential upside, as well as the relationship between the variance and maximum drawdown to determine if Chindata Group Holdings will continue to follow its price patterns.
Main Ideas
As we approach January, Chindata Group Holdings (US Stocks: CD) is presenting an intriguing investment opportunity. With a Wall Street target price of
$11.07, there is a significant upside potential from the current quote of $8.49. The company's EPS estimate for the next year stands at
$0.43, suggesting that profitability is on the horizon. However, investors should be aware of the total risk alpha of -0.09, indicating a higher level of risk relative to the potential return. Despite this, the potential for substantial growth and profitability makes Chindata Group Holdings a stock to watch in the coming month.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Chindata Group Holdings. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Chindata Group
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Chindata Group's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Chindata Group's Liquidity
Chindata Group
financial leverage refers to using borrowed capital as a funding source to finance Chindata Group Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Chindata Group financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Chindata Group's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Chindata Group's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Chindata Group's total debt and its cash.
Is Chindata Group valued correctly by the market?
Chindata Group Holdings has relatively low volatility with skewness of 1.35 and kurtosis of 6.22. However, we advise all investors to independently investigate Chindata Group Holdings to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Chindata Group'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 Chindata Group'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.
Returns Breakdown
| Return on Assets | 0.0335 |
| Return on Equity | 0.0669 |
| Return Capital | 0.0712 |
| Return on Sales | 0.31 |
As Warren Buffet wisely said, "Price is what you pay, value is what you get." Chindata Group Holdings (US Stocks: CD) seems to be embodying this principle as we head into January. With a Wall Street target price of $11.07, the stock has potential upside of 1.71, offering an attractive investment opportunity. The company's robust
financial health is evident in its net assets of $23.1B and working capital of $2.5B. Furthermore, Chindata's EPS estimate for the current year stands at $0.29, indicating potential for growth. However, investors should be mindful of the company's risk profile, as indicated by a downside deviation of 1.11 and a probability of bankruptcy at 39.19%. Despite these risks, the company's strong market capitalization of $3.11B and revenue of $4.55B suggest that Chindata Group Holdings could be a valuable addition to a diversified portfolio. .
Chindata is expecting lower volatility in January
Chindata Group Holdings Limited (NASDAQ: CD) is exhibiting signs of reduced volatility as we transition into January. The kurtosis, a statistical measure that depicts the distribution of observed data around the mean, has declined to 6.22. This decrease implies a reduction in the frequency of extreme price variations, suggesting a potential phase of relative stability for the stock. Investors should closely monitor this trend as it could offer more predictable trading opportunities. Chindata Group Holdings has a relatively low volatility with a skewness of 1.35 and a kurtosis of 6.22. However, we recommend that all investors conduct independent research on Chindata Group Holdings to ensure that all available information aligns with their expectations of its upside potential and future expected returns. Understanding different
market volatility trends often assists investors in timing the market. The appropriate use of volatility indicators allows traders to measure Chindata Group's stock risk against market volatility during both bullish and bearish trends. The increased level of volatility that accompanies bear markets can directly affect
Chindata Group's stock price, adding stress to investors as they witness their shares' value decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.
Our Final Takeaway
When is the right time to buy or sell Chindata Group Holdings? Buying stocks such as Chindata Group isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 8th of December 2023, we believe Chindata Group is currently
undervalued. It barely shadows the market and projects
very small probability of financial unrest in the next two years. Our latest 90 days Buy-Hold-Sell recommendation on the firm is
Strong Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Chindata Group Holdings. Please refer to our
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