Yahoo Finance Is Now The Time To Look At Buying Orion Group Holdings, Inc. (NYSE:ORN)?
Orion Group Holdings, Inc. (NYSE:ORN), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NYSE over the last few months. The company is inching closer to its yearly highs following the recent share price climb. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Orion Group Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for Orion Group Holdings
Is Orion Group Holdings Still Cheap?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 11.69% above our intrinsic value, which means if you buy Orion Group Holdings today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $9.36, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Orion Group Holdings’s share price may be more stable over time (relative to the market), as indicated by its low beta.
What does the future of Orion Group Holdings look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In Orion Group Holdings' case, its revenues over the next few years are expected to grow by 41%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? ORN’s optimistic future growth appears to have been factored into the current share price, 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 tabs on ORN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which 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.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Case in point: We've spotted 3 warning signs for Orion Group Holdings you should be mindful of and 1 of them shouldn't be ignored.
If you are no longer interested in Orion Group Holdings, 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.
