exactEarth Ltd (TSE:XCT), a infrastructure company based in Canada, saw significant share price volatility over the past couple of months on the TSX, rising to the highs of CA$1.15 and falling to the lows of CA$1.02. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether exactEarth’s current trading price of CA$1.07 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 exactEarth’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View out our latest analysis for exactEarth
What is exactEarth worth?
What kind of growth will exactEarth 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. 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. In the upcoming year, exactEarth’s earnings are expected to increase by 86.31%, 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? XCT’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 track record of its management team. Have these factors changed since the last time you looked at XCT? 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 XCT, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for XCT, which means it’s worth further examining 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 exactEarth. You can find everything you need to know about exactEarth in the latest infographic research report. If you are no longer interested in exactEarth, you can use our free platform to see my list of over 50 other stocks with a high growth potential.