Are retail investors purchasing Noble Corp (USA Stocks:NE) or Crestwood Equity?

NE Stock

USD 39.40 0.00 0.00%

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As many of us are excited about energy space, we will review both, Noble Corp and Crestwood Equity as a potential shorter-term opportunity. We are going to discuss some of the competitive aspects of both Noble and Crestwood.

Published over a month ago

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Reviewed by Ellen Johnson

By analyzing existing technical and fundamental indicators between Noble Corp and Crestwood, 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 Crestwood with a short position in Noble Corp. 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. Noble Corp has an asset utilization ratio of 37.15 percent. This indicates that the company is making $0.37 for each dollar of assets. An increasing asset utilization means that Noble Corp is more efficient with each dollar of assets it utilizes for everyday operations.

Are retail investors purchasing Noble Corp (USA Stocks:NE) or Crestwood Equity?

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 entities, such as Noble or Diamond is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Noble Corp's Liquidity

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

Correlation Between Noble and Diamond Offshore Drilling

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 Noble Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Diamond Offshore to your portfolio. If Diamond Offshore is not perfectly correlated to Noble Corp 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 Noble Corp, 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 NE and DO for more information.

Note

Are you currently holding both Noble Corp and Diamond Offshore in your portfolio?

Please note if you are using this as a pair-trade strategy between Noble Corp and Diamond Offshore, 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.

What is driving Noble Corp Investor Appetite?

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

Now, let's check Noble Corp revenue. Based on the latest financial disclosure, Noble Corp reported 770.33 M of revenue. This is 98.43% lower than that of the Energy sector and 52.76% lower than that of the Oil & Gas Drilling industry. The revenue for all United States stocks is 91.84% higher than that of Noble Corp. As for Crestwood Equity we see revenue of 6 B, which is 267.99% higher than that of the Oil & Gas Drilling

CEQP

6 B

NE	770.33 Million	9.17
Sector	1.63 Billion	19.41
CEQP	6 Billion	71.42

Noble showing appearance of lower volatility

Latest skewness indicator falls down to -0.18. Possible price growth? Noble Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.06. However, we advise investors to further question Noble Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Noble Corp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Noble Corp's 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 Conclusion on Noble Corp

Although some firms within the oil & gas drilling industry are still a little expensive, even after the recent corrections, Noble Corp may offer a potential longer-term growth to shareholders. To sum up, as of the 25th of February 2023, our analysis shows that Noble Corp almost mirrors the market. The firm is undervalued and projects very small probability of distress for the next 2 years. Our present 90 days buy-or-sell advice on the firm is Strong Hold.

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik do not own shares of Noble Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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