Yahoo Finance Is It Too Late To Buy Spectrum Brands Holdings Inc (NYSE:SPB)?
Spectrum Brands Holdings Inc (NYSE:SPB), a household products company based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Spectrum Brands Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Spectrum Brands Holdings
What is Spectrum Brands Holdings worth?
Great news for investors – Spectrum Brands Holdings is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $178.5, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Spectrum Brands Holdings’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will Spectrum Brands Holdings generate?
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 the company’s future expectations. Spectrum Brands Holdings’s earnings over the next few years are expected to increase by 32.07%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since SPB is currently undervalued, it may be a great time to increase 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 SPB for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SPB. But before you make any investment decisions, consider other factors such as the track record of its management team, 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 Spectrum Brands Holdings. You can find everything you need to know about Spectrum Brands Holdings in the latest infographic research report. If you are no longer interested in Spectrum Brands Holdings, 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.
