Yahoo Finance Is Now An Opportune Moment To Examine Zeta Global Holdings Corp. (NYSE:ZETA)?
Zeta Global Holdings Corp. (NYSE:ZETA), is not the largest company out there, but it saw a significant share price rise of 59% in the past couple of months on the NYSE. While good news for shareholders, the company has traded much higher in the past year. 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? Today we will analyse the most recent data on Zeta Global Holdings’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Zeta Global Holdings
Is Zeta Global Holdings Still Cheap?
According to our valuation model, Zeta Global Holdings seems to be fairly priced at around 15.69% above our intrinsic value, which means if you buy Zeta Global Holdings today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $13.80, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Zeta Global Holdings’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Zeta Global Holdings generate?
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 the upcoming year, Zeta Global Holdings' 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? ZETA’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 financial strength of the company. 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 ZETA, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
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. While conducting our analysis, we found that Zeta Global Holdings has 2 warning signs and it would be unwise to ignore them.
If you are no longer interested in Zeta Global 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.
