Shift4 Story

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FOUR -- USA Stock  

USD 99.67  4.01  4.19%

It seems Shift4 Payments will continue to recover much faster as its share price surged up 9.35% today. The firm current daily volatility is 3.43 percent, with a beta of 1.8 and an alpha of 0.1 over DOW. As many baby boomers are still indifferent towards stable market, it makes sense to sum up Shift4 Payments. I will address the reasons why this entity does not get much respect from retail investors under the current market uncertainty.
Published over a month ago
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Is Shift4 Payments (NYSE:FOUR) way too risky for millennials?
Shift4 Payments currently holds roughly 328.9 M in cash with 10.6 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 7.28. Shift4 Payments currently holds 439.5 M in liabilities with Debt to Equity (D/E) ratio of 0.79, which is about average as compared to similar companies. The entity has a current ratio of 3.76, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Investing in Shift4 Payments, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Shift4 Payments along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Shift4 Payments' stock 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. Please use the tools below to analyze the current value of Shift4 Payments in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Shift4 Payments. Your research has to be compared to or analyzed against Shift4 Payments' peers to derive any actionable benefits. When done correctly, Shift4 Payments' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Shift4 Payments.

How important is Shift4 Payments's Liquidity

Shift4 Payments financial leverage refers to using borrowed capital as a funding source to finance Shift4 Payments ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Shift4 Payments 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. Please check the breakdown between Shift4 Payments's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Shift4 Payments, but it might be worth checking our own buy vs. sell analysis

Shift4 Payments Correlation with Peers

Investors in Shift4 can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Shift4 Payments. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Shift4 Payments and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Shift4 is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Shift4 for more details

Detailed Outlook On Shift4 Payments

Shift4 Payments appears to be very steady, given 1 month investment horizon. Shift4 Payments owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.12, which indicates the firm had 0.12% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Shift4 Payments, which you can use to evaluate future volatility of the company. Please operate Shift4 Payments Risk Adjusted Performance of 0.058, semi deviation of 3.67, and Coefficient Of Variation of 1522.16 to confirm if our risk estimates are consistent with your expectations.
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0.340.7-0.29-0.23
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0.340.31-0.180.06
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0.70.310.19-0.43
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-0.29-0.180.19-0.09
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-0.230.06-0.43-0.09
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today Shift4 Payments spike

Shift4 Payments latest downside variance advances over 15.92. Shift4 Payments shows above-average downside volatility for the selected time horizon. We advise investors to inspect Shift4 Payments further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Shift4 Payments future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Shift4 Payments' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Shift4 Payments' 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.

The Bottom Line

While some other entities within the software?infrastructure industry are still a little expensive, even after the recent corrections, Shift4 Payments may offer a potential longer-term growth to retail investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither purchase nor exit any shares of Shift4 Payments at this time. The Shift4 Payments risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Shift4 Payments.

About Contributor

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 Raphi Shpitalnik do not own shares of Shift4 Payments. Please refer to our Terms of Use for any information regarding our disclosure principles.

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