Radiant Logistics, Inc. (NYSEMKT:RLGT), which is in the logistics business, and is based in United States, saw significant share price movement during recent months on the AMEX, rising to highs of US$5.81 and falling to the lows of US$4.76. 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 Radiant Logistics’s current trading price of US$4.82 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Radiant Logistics’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What’s the opportunity in Radiant Logistics?
Great news for investors – Radiant Logistics is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $8.17, but it is currently trading at US$4.82 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Radiant Logistics’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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 Radiant Logistics look like?
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. 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. With profit expected to grow by 32% over the next year, the near-term future seems bright for Radiant Logistics. 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? Since RLGT is currently undervalued, it may be a great time to accumulate more of 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 RLGT for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy RLGT. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, 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 Radiant Logistics. You can find everything you need to know about Radiant Logistics in the latest infographic research report. If you are no longer interested in Radiant Logistics, 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 firstname.lastname@example.org. 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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