Should You Think About Buying Danieli & C. Officine Meccaniche S.p.A. (BIT:DAN) Now?

While Danieli & C. Officine Meccaniche S.p.A. (BIT:DAN) might not have the largest market cap around , it led the BIT gainers with a relatively large price hike in the past couple of weeks. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. 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. But what if there is still an opportunity to buy? Let’s take a look at Danieli & C. Officine Meccaniche’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What's The Opportunity In Danieli & C. Officine Meccaniche?

Good news, investors! Danieli & C. Officine Meccaniche is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 9.72x is currently well-below the industry average of 16.84x, meaning that it is trading at a cheaper price relative to its peers. Danieli & C. Officine Meccaniche’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its industry peers, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Check out our latest analysis for Danieli & C. Officine Meccaniche

What does the future of Danieli & C. Officine Meccaniche 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. However, with a relatively muted profit growth of 1.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Danieli & C. Officine Meccaniche, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since DAN is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

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

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Danieli & C. Officine Meccaniche, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.