Should you exit your ChargePoint Holdings position?

As we approach the end of the fiscal year, ChargePoint Holdings, a notable player in the Specialty Retail sector, specifically within the Electrical Equipment category, is generating significant buzz among investors. The question on everyone's mind is: Can we expect a December rally for this Consumer Cyclical industry stock? As of now, the stock's Valuation Market Value stands at $2.71 billion, while its Valuation Real Value is higher at $4.52 billion. This discrepancy indicates a potential undervaluation, hinting at a promising investment opportunity. However, it's crucial to note that the stock's Valuation Hype Value is currently at $2.9 billion, suggesting a level of hype in the market that could affect its performance. Analysts' opinions on the stock are varied. With 17 estimates on record, the Analyst Target Price Estimated Value for the stock stands at $10.04. The highest estimated target price among these analysts reaches $17, while the lowest dips to $5. This disparity in estimates indicates a level of uncertainty surrounding the stock's future performance. Nonetheless, the Analyst Overall Consensus leans towards a 'Buy' rating, with 12 strong buys, 2 buys, and 4 holds. The possible upside price is $8.11, indicating potential for substantial growth. However, investors should be cautious as there's a possible downside price of $0.0271, indicating a potential loss. The Naive Expected Forecast Value for the stock is $3.26, which, when compared to the current market value, suggests potential for growth. However, investors should approach this stock with caution, considering the hype value and the potential downside price. In conclusion, while ChargePoint Holdings presents an intriguing investment opportunity, it's crucial for investors to carefully evaluate all available data before making a decision. The potential for a December rally is there, but it's not guaranteed. As always, thorough research and careful consideration are key when it comes to investing. Generally, our analysis centers on examining the price patterns of ChargePoint Holdings (US Stocks: CHPT) and their correlations with various microeconomic environments and drivers. We also utilize predictive analytics to construct daily price indicators for ChargePoint Holdings and compare them against related drivers. While strategic planning is essential for successful stock investment, sometimes bold action is equally crucial. Let's delve into why this might be the case with ChargePoint Holdings. We will assess the reasons behind our continued confidence in anticipating a recovery.
Published over six months ago
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Reviewed by Raphi Shpitalnik

As we approach the end of the year, ChargePoint Holdings, a prominent player in the Specialty Retail industry, is showing signs of potential for a December rally. Despite a Total Risk Alpha of -1.15, indicating a higher risk relative to the market, the company's Mean Deviation of 3.38 suggests a relatively stable performance. This stability, coupled with an Open Price of $2.69, presents an attractive entry point for investors looking to capitalize on the company's potential upside of 6.57. However, it's important to note that ChargePoint's Standard Deviation of 4.82 indicates a higher volatility, which could lead to larger price swings. Despite this, the company's Kurtosis of 2.39 suggests that the distribution of returns is less extreme and more concentrated around the mean, which could be a positive sign for investors. In conclusion, while ChargePoint Holdings does carry some risk, its current price and potential upside present an intriguing opportunity for investors willing to take on a bit of volatility. As always, investors should carefully consider their own risk tolerance and investment goals before making a decision.

Key Takeaways

ChargePoint Holdings exhibits a Beta (market volatility) of 3.3343, indicating a relatively significant risk compared to the market. If the market rises, the company is anticipated to outperform it. However, in the event of negative market returns, ChargePoint Holdings is likely to underperform. While it's crucial to consider ChargePoint Holdings' historical returns, caution is advised when using current equity trend patterns. Our approach to predicting a stock's future performance involves examining both its past performance charts and the overall business, including all available technical indicators. ChargePoint Holdings provides fifteen different technical indicators that can assist in evaluating its performance. ChargePoint Holdings is projected to return -1.5%. Please ensure to verify ChargePoint Holdings' risk-adjusted performance, variance, and the relationship between the variance and potential upside to determine if ChargePoint Holdings' past performance will be replicated at some point in the near future.
The successful prediction of ChargePoint Holdings 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 ChargePoint 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 ChargePoint Holdings based on ChargePoint Holdings hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to ChargePoint Holdings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to ChargePoint Holdings's related companies.

Use Technical Analysis to project ChargePoint expected Price

ChargePoint Holdings 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, stock market cycles, or different charting patterns.
A focus of ChargePoint Holdings technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of ChargePoint Holdings 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...

ChargePoint Holdings Gross Profit

ChargePoint Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ChargePoint Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ChargePoint Holdings Gross Profit growth over the last 10 years. Please check ChargePoint Holdings' gross profit and other fundamental indicators for more details.

Going after ChargePoint Financials

The company reported the previous year's revenue of 468.09 M. Net Loss for the year was (344.46 M) with profit before overhead, payroll, taxes, and interest of 86.19 M.

Deferred Revenue Breakdown

ChargePoint Holdings Deferred Revenue yearly trend continues to be comparatively stable with very little volatility. Deferred Revenue will likely drop to about 168.6 M in 2023. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Where this item is not contained on the company consolidated financial statements and cannot otherwise be imputed the value of 0 is used. At this time, ChargePoint Holdings' Deferred Revenue is comparatively stable as compared to the past year.
201045.08 Million
201972.67 Million
202089.83 Million
2021146.81 Million
2022198.61 Million
2023168.56 Million
"Fortune favors the bold," is a well-known adage in the financial world and it seems particularly relevant when considering the potential of ChargePoint Holdings. Despite a challenging year marked by a negative return on assets of -0.22 and a high probability of bankruptcy at 70.65%, the company has managed to maintain a strong cash position, with cash and equivalents standing at a robust $471.54 million. Furthermore, with a current ratio of 2.85X, ChargePoint demonstrates a solid ability to meet its short-term obligations, further underlining its financial resilience. However, it's worth noting that the company's total risk alpha of -1.15 and a Jensen Alpha of -1.33 indicate a level of risk that may not be suitable for all investors. Despite these challenges, the potential upside of 6.57 and a target price of $10.51 suggest that ChargePoint could be poised for a December rally. Nevertheless, investors should be aware that the company's market capitalization of $1.09 billion reflects a significant level of investor interest and expectations. Therefore, while ChargePoint presents potential opportunities, it's crucial to approach with a bold yet cautious investment strategy.

Will ChargePoint pull back in December 2023?

ChargePoint Holdings has recently witnessed a significant surge in its maximum drawdown, exceeding 25.59%. This suggests an elevated level of risk and volatility, implying that the stock's price has undergone a considerable drop from its peak. Given this situation, it's plausible that ChargePoint may experience a pullback in December 2023. Investors should closely monitor the stock's performance and market conditions to make informed decisions. However, given the company's robust market position in the EV charging industry, any potential pullback could also represent a buying opportunity for long-term investors. As of November 12, 2023, ChargePoint Holdings displays a mean deviation of 3.38, and a Risk Adjusted Performance of -0.19. The technical analysis of ChargePoint Holdings provides a methodology to utilize historical prices and volume patterns to predict a pattern that approximates the direction of the company's future prices. In other words, this information can be used to determine if the company will mirror its model of historical prices and volume momentum, or if the prices will eventually revert. We were able to interpolate data for thirteen technical drivers for ChargePoint Holdings, which can be compared to its competitors.
Please verify ChargePoint Holdings' risk-adjusted performance, variance, as well as the relationship between the variance and potential upside to decide if ChargePoint Holdings is priced correctly, given its current price of $2.71 per share. Also, please reconfirm ChargePoint Holdings' Jensen Alpha, which currently stands at -1.33, to validate the company's sustainability in the future. In conclusion, ChargePoint Holdings presents a compelling investment opportunity as we approach the end of the fiscal year. With an analyst overall consensus of a 'Buy' and a significant number of strong buys at 12, the stock seems to be in a favorable position. The analyst target price estimated value stands at $10.044, with a possible upside price of $8.11, indicating a potential for substantial growth. Despite a valuation hype value of 2.9, the valuation real value is estimated at 4.52, suggesting that the stock is undervalued. However, investors should also consider the possible downside price of 0.0271. As we head into December, ChargePoint Holdings appears to have a promising outlook, but as always, investors should conduct their own thorough research before making any investment decisions. .

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Editorial Staff

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 Gabriel Shpitalnik do not own shares of ChargePoint Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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