Are retail investors buying Gds Holdings (NASDAQ:GDS) or Cognizant Tech?

GDS Stock  USD 26.38  0.25  0.96%   
As many rational traders are trying to avoid technology space, it makes sense to sum up Gds Holdings a little further and understand how it stands against Cognizant Tech and other similar entities. We are going to discuss some of the competitive aspects of both Gds Holdings and Cognizant.
Published over two months ago
View all stories for GDS Holdings | View All Stories
By analyzing existing fundamental indicators between Gds Holdings and Cognizant, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Cognizant with a short position in Gds Holdings. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gds Holdings has an asset utilization ratio of 106.5 percent. This connotes that the company is making $1.06 for each dollar of assets. An increasing asset utilization means that Gds Holdings is more efficient with each dollar of assets it utilizes for everyday operations.

How important is GDS Holdings's Liquidity

GDS Holdings financial leverage refers to using borrowed capital as a funding source to finance GDS Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. GDS Holdings 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 GDS Holdings'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 GDS Holdings, but it might be worth checking our own buy vs. sell analysis

Is GDS Holdings valued sensibly by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Gds Holdings revenue. Based on the latest financial disclosure, Gds Holdings reported 8.8 B of revenue. This is 115.91% higher than that of the Technology sector and 3.59% higher than that of the Information Technology Services industry. The revenue for all United States stocks is 6.73% higher than that of Gds Holdings. As for Cognizant Tech we see revenue of 19.37 B, which is 128.02% higher than that of the Information Technology Services

Gds Holdings8.8 Billion
Sector4.08 Billion
Cognizant19.37 Billion
8.8 B
Gds Holdings
4.1 B
19.4 B

Will Gds Holdings quickly start a bounce-back?

Gds Holdings latest standard deviation advances over 7.69. Gds Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Gds Holdings independently to ensure intended market timing strategies are aligned with expectations about Gds Holdings volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gds Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gds Holdings' 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.

Our Final Take On Gds Holdings

While some other firms in the information technology services industry are either recovering or due for a correction, Gds Holdings may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Gds Holdings valuation and our trade advice on Gds Holdings is due to the recent market swings and your selection of investing horizon. 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 Gds Holdings.

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

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to