Is Polished riskier than Caretrust (USA Stocks:CTRE)?

POL Stock  USD 0.79  0.03  3.66%   
It looks like Caretrust will be up for a correction faster as its share price went up 0.1% today to Polished's 10.98%. As many rational traders are trying to avoid consumer cyclical space, it makes sense to summarize Polished a little further and understand how it stands against Caretrust and other similar entities. We are going to summarize some of the competitive aspects of both Polished and Caretrust.
Published over a month ago
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By analyzing existing basic indicators between Polished and Caretrust, 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 Caretrust with a short position in Polished. 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. Polished has an asset utilization ratio of 96.36 percent. This denotes that the company is making $0.96 for each dollar of assets. An increasing asset utilization means that Polished is more efficient with each dollar of assets it utilizes for everyday operations.
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 Polished or Tractor is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Polished's Liquidity

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

Correlation Between Polished and Tractor Supply

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 Polished together with similar or unrelated positions with a negative correlation. For example, you can also add Tractor Supply to your portfolio. If Tractor Supply is not perfectly correlated to Polished 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 Polished, 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 POL and TSCO for more information.

A Deeper look at Polished

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

Let me take a closer look at Polished revenue. Based on the latest financial disclosure, Polished reported 362.31 M of revenue. This is 94.92% lower than that of the Consumer Cyclical sector and 97.44% lower than that of the Specialty Retail industry. The revenue for all United States stocks is 96.16% higher than that of Polished. As for Caretrust we see revenue of 190.19 M, which is 98.65% lower than that of the Specialty Retail

Sector
7.1 B
POL362.31 Million4.72
Sector7.13 Billion92.81
CTRE190.19 Million2.48

Will Polished stakeholders go bonkers after another pull down?

The kurtosis is down to 1.94 as of today. Polished is displaying above-average volatility over the selected time horizon. Investors should scrutinize Polished independently to ensure intended market timing strategies are aligned with expectations about Polished volatility. Polished is a potential penny stock. Although Polished may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Polished. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Polished instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Bottom Line

While few other entities within the specialty retail industry are still a little expensive, even after the recent corrections, Polished may offer a potential longer-term growth to stakeholders. On the whole, as of the 27th of December 2022, our overall 90 days buy vs. sell advice on the company is Strong Sell. However, we believe Polished is currently undervalued with low probability of distress for the next two years.

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 Aina Ster do not own shares of Polished. Please refer to our Terms of Use for any information regarding our disclosure principles.

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