HighPoint Story

HPR -- USA Stock

USD 4.73 0.73 13.37%

Macroaxis Story

Today we may see the proof that Black Stone would recover much slower from the new pull down as its shares went up 1.59% to Highpoint Resources's 21.4003%. As many of us are excited about energy space, we will review both, Highpoint Resources and Black Stone as a potential short-term opportunity. We are going to discuss some of the competitive aspects of both Highpoint and Black.

Published over a month ago

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Will Black Stone retail investors switch to Highpoint (NYSE:HPR)?

By analyzing existing basic indicators between Highpoint Resources and Black, 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 Black with a short position in Highpoint Resources. 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. Highpoint Resources has an asset utilization ratio of 14.01 percent. This connotes that the company is making $0.14 for each dollar of assets. An increasing asset utilization means that Highpoint Resources Corp is more efficient with each dollar of assets it utilizes for everyday operations.

Will Black Stone retail investors switch to Highpoint (NYSE:HPR)?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as HighPoint or ConocoPhillips is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is HighPoint Resources's Liquidity

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

Correlation Between HighPoint and ConocoPhillips

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding HighPoint Resources together with similar or unrelated positions with a negative correlation. For example, you can also add ConocoPhillips to your portfolio. If ConocoPhillips is not perfectly correlated to HighPoint Resources it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When HighPoint Resources for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between HPR and COP for more information.

Note

Are you currently holding both HighPoint Resources and ConocoPhillips in your portfolio?

Please note if you are using this as a pair-trade strategy between HighPoint Resources and ConocoPhillips, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Going after HighPoint Financials

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 Highpoint Resources revenue. Based on the latest financial disclosure, Highpoint Resources Corp reported 250.35 M of revenue. This is 99.49% lower than that of the Energy sector and 92.39% lower than that of the Oil & Gas E&P industry. The revenue for all United States stocks is 97.35% higher than that of Highpoint Resources. As for Black Stone we see revenue of 287.56 M, which is 91.26% lower than that of the Oil & Gas E&P

Sector

3.3 B

HPR	250.35 Million	6.54
Sector	3.29 Billion	85.94
BSM	287.56 Million	7.51

Are Highpoint Resources technical ratios showing a come-back?

Highpoint Resources sortino ratio is up to -0.01. Highpoint Resources Corp is displaying above-average volatility over the selected time horizon. Investors should scrutinize Highpoint Resources Corp independently to ensure intended market timing strategies are aligned with expectations about Highpoint Resources volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Highpoint Resources' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Highpoint Resources' 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 Highpoint Resources

While other entities in the oil & gas e&p industry are either recovering or due for a correction, Highpoint may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 6th of March 2021, our actual 30 days buy-or-sell advice on the enterprise is Cautious Hold. We believe Highpoint Resources is overvalued with average chance of distress for the next two years.

About Contributor

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 HighPoint Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.

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