Yahoo Finance At US$30.71, Is Hyster-Yale Materials Handling, Inc. (NYSE:HY) Worth Looking At Closely?
While Hyster-Yale Materials Handling, Inc. (NYSE:HY) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$44.89 at one point, and dropping to the lows of US$30.71. 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 Hyster-Yale Materials Handling's current trading price of US$30.71 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 Hyster-Yale Materials Handling’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Hyster-Yale Materials Handling
Is Hyster-Yale Materials Handling still cheap?
Great news for investors – Hyster-Yale Materials Handling is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $51.08, but it is currently trading at US$30.71 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Hyster-Yale Materials Handling’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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.
What does the future of Hyster-Yale Materials Handling look like?
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. In the upcoming year, Hyster-Yale Materials Handling's earnings are expected to increase by 75%, 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 HY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 HY 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 HY. 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 buy.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, Hyster-Yale Materials Handling has 3 warning signs (and 2 which are significant) we think you should know about.
If you are no longer interested in Hyster-Yale Materials Handling, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
