Northfield Bancorp Inc (Staten Island, NY) (NASDAQ:NFBK), operating in the financial services industry based in United States, received a lot of attention from a substantial price movement on the NasdaqGS in the over the last few months, increasing to $17.6 at one point, and dropping to the lows of $15.36. 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 Northfield Bancorp (Staten Island NY)’s current trading price of $16.6 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 Northfield Bancorp (Staten Island NY)’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Northfield Bancorp (Staten Island NY)
Is Northfield Bancorp (Staten Island NY) still cheap?According to my relative valuation model, the stock is currently overvalued. I’ve used the price-to-equity ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 30.38x is currently well-above the industry average of 23.18x, meaning that it is trading at a more expensive price relative to its peers. Another thing to keep in mind is that Northfield Bancorp (Staten Island NY)’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of Northfield Bancorp (Staten Island NY) look like?Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Northfield Bancorp (Staten Island NY)’s earnings over the next few years are expected to increase by 55.35%, 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? It seems like the market has well and truly priced in NFBK’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe NFBK should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on NFBK for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for NFBK, which means it’s worth diving deeper into other factors 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 Northfield Bancorp (Staten Island NY). You can find everything you need to know about Northfield Bancorp (Staten Island NY) in the latest infographic research report. If you are no longer interested in Northfield Bancorp (Staten Island NY), you can use our free platform to see my list of over 50 other stocks with a high growth potential.