Yahoo Finance When Should You Buy Haverty Furniture Companies, Inc. (NYSE:HVT)?
Haverty Furniture Companies, Inc. (NYSE:HVT), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$51.88 at one point, and dropping to the lows of US$35.69. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Haverty Furniture Companies' current trading price of US$39.04 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Haverty Furniture Companies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Haverty Furniture Companies
Is Haverty Furniture Companies still cheap?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.79% above my intrinsic value, which means if you buy Haverty Furniture Companies today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $38.73, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Haverty Furniture Companies’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Haverty Furniture Companies?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -6.8% expected next year, near-term growth certainly doesn’t appear to be a driver for a buy decision for Haverty Furniture Companies. This certainty tips the risk-return scale towards higher risk.
What this means for you:
Are you a shareholder? Currently, HVT appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on HVT for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on HVT should the price fluctuate below its true value.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. To help with this, we've discovered 5 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Haverty Furniture Companies.
If you are no longer interested in Haverty Furniture Companies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
