Yahoo Finance What Does Werner Enterprises, Inc.'s (NASDAQ:WERN) Share Price Indicate?
Werner Enterprises, Inc. (NASDAQ:WERN), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$47.31 and falling to the lows of US$42.30. 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 Werner Enterprises' current trading price of US$44.74 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Werner Enterprises’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 Werner Enterprises
What Is Werner Enterprises Worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 14.18% above my intrinsic value, which means if you buy Werner Enterprises today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $39.18, there’s only an insignificant downside when the price falls to its real value. Furthermore, Werner Enterprises’s low beta implies that the stock is less volatile than the wider market.
What does the future of Werner Enterprises 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. However, with a negative profit growth of -0.7% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Werner Enterprises. This certainty tips the risk-return scale towards higher risk.
What This Means For You
Are you a shareholder? WERN seems fairly priced right now, 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 tabs on WERN for a while, now may not be the most optimal 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 WERN should the price fluctuate below its true value.
So while earnings quality is important, it's equally important to consider the risks facing Werner Enterprises at this point in time. Every company has risks, and we've spotted 1 warning sign for Werner Enterprises you should know about.
If you are no longer interested in Werner Enterprises, 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.
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