Yahoo Finance Is Now The Time To Look At Buying PageGroup plc (LON:PAGE)?
PageGroup plc (LON:PAGE), which is in the professional services business, and is based in United Kingdom, led the LSE gainers with a relatively large price hike in the past couple of weeks. 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, could the stock still be trading at a relatively cheap price? Let’s examine PageGroup’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for PageGroup
What's the opportunity in PageGroup?
According to my valuation model, PageGroup seems to be fairly priced at around 0.4% below my intrinsic value, which means if you buy PageGroup today, you’d be paying a reasonable price for it. And if you believe the company’s true value is £4.89, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since PageGroup’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 PageGroup 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. Though in the case of PageGroup, it is expected to deliver a relatively unexciting earnings growth of 9.2%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? PAGE’s 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 conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on PAGE, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on PageGroup. You can find everything you need to know about PageGroup in the latest infographic research report. If you are no longer interested in PageGroup, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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