HD Supply Holdings, Inc. (NASDAQ:HDS), which is in the trade distributors business, and is based in United States, saw its share price hover around a small range of US$39.08 to US$42.87 over the last few weeks. But is this actually reflective of the share value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at HD Supply Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Is HD Supply Holdings still cheap?
Good news, investors! HD Supply Holdings is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $62.16, but it is currently trading at US$42.87 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because HD Supply 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.
Can we expect growth from HD Supply Holdings?
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. HD Supply Holdings’s earnings over the next few years are expected to increase by 27%, 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? Since HDS is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on HDS for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HDS. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on HD Supply Holdings. You can find everything you need to know about HD Supply Holdings in the latest infographic research report. If you are no longer interested in HD Supply Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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