Yahoo Finance Is Now The Time To Look At Buying Service Corporation International (NYSE:SCI)?
Service Corporation International (NYSE:SCI) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$75.56 at one point, and dropping to the lows of US$67.59. 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 Service Corporation International's current trading price of US$70.10 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Service Corporation International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Service Corporation International
What Is Service Corporation International Worth?
According to our valuation model, Service Corporation International seems to be fairly priced at around 0.7% below our intrinsic value, which means if you buy Service Corporation International today, you’d be paying a fair price for it. And if you believe the company’s true value is $70.60, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Service Corporation International’s share price may be more stable over time (relative to the market), as indicated by its low beta.
What kind of growth will Service Corporation International generate?
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. 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. With profit expected to grow by a double-digit 10% over the next couple of years, the outlook is positive for Service Corporation International. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? It seems like the market has already priced in SCI’s positive 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 tabs on SCI, 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 diving deeper into 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. For example, Service Corporation International has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
If you are no longer interested in Service Corporation International, 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.
