Stock Analysis

Is Now An Opportune Moment To Examine PageGroup plc (LON:PAGE)?

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LSE:PAGE
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PageGroup plc (LON:PAGE), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the LSE. 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, what if the stock is still a bargain? Let’s take a look at PageGroup’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for PageGroup

What's the opportunity in PageGroup?

Good news, investors! PageGroup is still a bargain right now. According to my valuation, the intrinsic value for the stock is £10.36, but it is currently trading at UK£6.25 on the share market, meaning that there is still an opportunity to buy now. However, given that PageGroup’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of PageGroup look like?

earnings-and-revenue-growth
LSE:PAGE Earnings and Revenue Growth August 27th 2021

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 more than double over the next couple of years, the future seems bright for PageGroup. 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 PAGE is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on PAGE for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PAGE. 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.

If you'd like to know more about PageGroup as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for PageGroup you should know about.

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