We offer trading recommendations to align with the current expert consensus on Chindata Group Holdings. Our sophisticated recommendation engine employs a multi-dimensional algorithm that evaluates the company's growth potential by analyzing all available technical and fundamental data.
Main Ideas
As Chindata Group Holdings navigates through the ebbs and flows of the Information Technology Services industry, its recent price dip to a low of
$8.25 may catch the eye of savvy investors looking for potential growth opportunities. Despite a market rally that has buoyed many stocks, Chindata's slight price change of
-$0.09 suggests a resilience that could be indicative of underlying strength. With a Treynor Ratio of
0.3288, the stock demonstrates a favorable
risk-adjusted return potential, which could be appealing for those willing to take on calculated risks. The Accumulation Distribution indicator stands at a robust
50.8K, hinting at a possible turnaround as more investors might be accumulating shares on the dip. While the market's volatility, reflected in a Standard Deviation of
1.15, cannot be ignored, Chindata's current position might represent a strategic buying opportunity for investors who believe in the company's long-term prospects amidst short-term market fluctuations. The modest Information Ratio of
0.0087 further supports the notion that Chindata could be poised for a rebound, making it a potentially attractive addition to a diversified investment portfolio.
The successful prediction of Chindata Group
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Chindata Group Holdings, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Chindata Group based on Chindata Group hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Chindata Group's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Chindata Group's related companies.
Use Technical Analysis to project Chindata expected Price
Chindata Group technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, delisted stock market cycles, or different charting patterns.
A focus of Chindata Group technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Chindata Group trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Is Chindata Group valued correctly by the market?
The latest indifference towards the small price fluctuations of Chindata Group Holdings could raise concerns from shareholders as the firm is trading at a share price of
8.42 on
1,874,196 in volume. The company executives did not add any value to Chindata Group investors in
October. However, most investors can still diversify their portfolios with Chindata Group Holdings to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.17. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2020 | 2021 | 2022 | 2023 (projected) |
Revenues USD | 280.0M | 445.7M | 653.0M | 519.1M | Revenues | 1.8B | 2.9B | 4.6B | 4.9B |
Cost of Revenue Breakdown
Chindata Group Cost of Revenue is increasing over the years with slightly volatile fluctuation. Cost of Revenue is expected to dwindle to about 2
B. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Where this item is not contained on the company consolidated financial statements and cannot otherwise be imputed the value of 0 is used. At present, Chindata Group's Cost of Revenue is projected to increase significantly based on the last few years of reporting.
| 2010 | 132.77 Million |
| 2019 | 575.22 Million |
| 2020 | 1.1 Billion |
| 2021 | 1.57 Billion |
| 2022 | 2.53 Billion |
| 2023 | 2.01 Billion |
In the world of investing, it's often said that when others are greedy, be fearful, and when others are fearful, be greedy. Chindata Group Holdings, a leading player in the data center industry, seems to be presenting such a contrarian opportunity. Despite a general market rally, Chindata's stock has not followed suit, potentially setting the stage for a strategic buying opportunity. With a robust EBITDA of **$2.1 billion** and a net income of **$651.63 million**, the company's
financial health appears solid. Moreover, the stock's Price to Book ratio stands at a modest 1.96X, suggesting that it may be undervalued relative to its assets. Institutional investors seem to have confidence in the company, holding 39.94% of its shares. With a market capitalization of $3.12 billion and a strong cash position, including $4.2 billion in cash and equivalents, Chindata may be well-positioned for future growth. Investors looking for exposure to the technology sector might consider this period of underperformance as a potential entry point into Chindata Group Holdings.
Will Chindata shareholders exit after the dip?
The recent increase in Chindata Group Holdings' Total Risk Alpha to -0.01 signifies a slight enhancement in the stock's risk-adjusted performance when compared to the market. Nevertheless, this value, hovering near zero, reveals that the company is not generating substantial alpha, or excess return, to compensate for the inherent risks involved. With the prospect of a potential price decrease on the horizon, shareholders may find themselves at a juncture, having to consider the modest risk compensation against the possibility of further price reductions. Investors who prioritize capital preservation might view this as a strategic moment to divest their holdings, whereas those with a long-term perspective or a greater tolerance for volatility may choose to maintain their positions, banking on Chindata's long-term growth potential to eventually surmount the prevailing market uncertainties. Chindata Group Holdings exhibits relatively low volatility, with a skewness of 1.44 and a kurtosis of 7.15. Nonetheless, it is recommended that all investors conduct their own due diligence on Chindata Group Holdings to confirm that all publicly available information aligns with their expectations regarding its upside potential and anticipated future returns. Being cognizant of different
market volatility trends often assists investors in timing the market. The effective application of volatility indicators allows traders to assess Chindata Group's stock risk in relation to market volatility during both bullish and bearish phases.
The heightened volatility associated with bear markets can have a direct impact on
Chindata Group's stock price, while also adding stress to investors as they witness a decline in the value of their shares. This scenario commonly compels investors to rebalance their portfolios by acquiring different stocks as prices drop. In conclusion, despite Chindata Group Holdings' stock taking a dip in today's session, the broader
market sentiment does not overshadow the company's individual prospects. With an analyst overall consensus of a 'Buy' and a robust number of strong buys standing at **2**, investors may consider this pullback a potential buying opportunity. The disparity between the valuation hype value of **8.51** and the valuation real value of 9.56 suggests that the stock might be undervalued, offering room for growth towards the analyst target price estimated value of 10.533. While the lowest estimated target price sits at 8.6, the highest estimated target price reaches 13, indicating a significant upside potential. As the fiscal year-end approaches in December, investors should closely monitor Chindata Group's performance metrics and market position to
make informed decisions. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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 Aina Ster do not own shares of Chindata Group Holdings. Please refer to our
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