Why American Woodmark Corporation (NASDAQ:AMWD) Could Be Worth Watching

While American Woodmark Corporation (NASDAQ:AMWD) might not have the largest market cap around , it saw a significant share price rise of 22% in the past couple of months on the NASDAQGS. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a 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 American Woodmark’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for American Woodmark

Is American Woodmark Still Cheap?

Great news for investors – American Woodmark is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $142.66, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that American Woodmark’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 kind of growth will American Woodmark generate?

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. Though in the case of American Woodmark, it is expected to deliver a relatively unexciting top-line growth of 7.1% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since AMWD is currently undervalued, 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 undervaluation.

Are you a potential investor? If you’ve been keeping an eye on AMWD for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AMWD. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

It can be quite valuable to consider what analysts expect for American Woodmark from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in American Woodmark, 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.