Yahoo Finance What Does Libbey Inc’s (LBY) Share Price Indicate?
Libbey Inc (AMEX:LBY), a consumer durables and apparel company based in United States, saw significant share price volatility over the past couple of months on the AMEX, rising to the highs of $9 and falling to the lows of $7.49. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether LBY's current trading price of $8.11 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 LBY’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Libbey
What is LBY worth?
Good news, investors! LBY is still a bargain right now. My valuation model shows that the stock’s value should be $13.91 but it is currently trading at $8.11 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because LBY’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, LBY’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from LBY?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio.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 LBY future expectations. Though in the case of LBY, it is expected to deliver a relatively unexciting top-line growth of 0.51% over the next year, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for LBY, at least in the near term.
What this means for you:
Are you a shareholder? Since LBY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on LBY for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LBY. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Libbey. You can find everything you need to know about LBY in the latest infographic research report. If you are no longer interested in Libbey, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
