Yahoo Finance What Is Garrett Motion Inc.'s (NASDAQ:GTX) Share Price Doing?
Garrett Motion Inc. (NASDAQ:GTX), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. The company is now trading at yearly-high levels following the recent surge in its share price. As a US$2.3b market-cap stock, it seems odd Garrett Motion is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Today we will analyse the most recent data on Garrett Motion’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Garrett Motion
Is Garrett Motion Still Cheap?
According to our valuation model, Garrett Motion seems to be fairly priced at around 19% below our intrinsic value, which means if you buy Garrett Motion today, you’d be paying a fair price for it. And if you believe the company’s true value is $11.82, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Garrett Motion’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.
What does the future of Garrett Motion look like?
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 relatively muted revenue growth of 6.2% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Garrett Motion, at least in the short term.
What This Means For You
Are you a shareholder? It seems like the market has already priced in GTX’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on GTX, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. To help with this, we've discovered 3 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Garrett Motion.
If you are no longer interested in Garrett Motion, 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.
