Will Credit Suisse (NYSE:CS) retail investors shift to Amazon (NASDAQ:AMZN)?


USD 3.38  0.29  9.39%   

Amazon would recover faster from the latest slide as its shares price went up 1.57% to Credit Suisse's 3.92%As many rational traders are trying to avoid financial services space, it makes sense to sum up Credit Suisse Group a little further and understand how it stands against Amazon and other similar entities. We are going to discuss some of the competitive aspects of both Credit and Amazon.
Published over two months ago
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By analyzing existing basic indicators between Credit Suisse and Amazon, 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 Amazon with a short position in Credit Suisse. 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. Credit Suisse has an asset utilization ratio of 2.24 percent. This connotes that the company is making $0.0224 for each dollar of assets. An increasing asset utilization means that Credit Suisse Group is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Credit Suisse's Liquidity

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

Another Deeper Perspective

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 Credit Suisse revenue. Based on the latest financial disclosure, Credit Suisse Group reported 18.08 B of revenue. This is 61.29% higher than that of the Financial Services sector and significantly higher than that of the Banks—Diversified industry. The revenue for all United States stocks is 91.63% lower than that of the firm. As for Amazon we see revenue of 485.9 B, which is much higher than that of the Banks—Diversified

485.9 B
CS18.08 Billion3.59
AMZN485.9 Billion96.41

Will Credit Suisse latest fall continue?

Latest coefficient of variation is at -600.99. Credit Suisse Group exhibits very low volatility with skewness of -0.69 and kurtosis of 1.41. However, we advise investors to further study Credit Suisse Group technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Credit Suisse'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 Credit Suisse'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 Final Take On Credit Suisse

While some companies in the banks—diversified industry are either recovering or due for a correction, Credit may not be as strong as the others in terms of longer-term growth potentials. Taking everything into account, as of the 1st of October 2022, our actual 90 days buy-sell recommendation on the enterprise is Cautious Hold. We believe Credit Suisse is undervalued with average chance 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 Rifka Kats do not own shares of Credit Suisse Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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