Should You Think About Buying Carlisle Companies Incorporated (NYSE:CSL) Now?

Today we're going to take a look at the well-established Carlisle Companies Incorporated (NYSE:CSL). The company's stock received a lot of attention from a substantial price increase on the NYSE over the last few months. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Carlisle Companies’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Carlisle Companies

What's The Opportunity In Carlisle Companies?

According to our valuation model, Carlisle Companies seems to be fairly priced at around 15.53% above our intrinsic value, which means if you buy Carlisle Companies today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $370.39, there’s only an insignificant downside when the price falls to its real value. What's more, Carlisle Companies’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Carlisle Companies?

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. Carlisle Companies' earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? CSL’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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on CSL, 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 the company, 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 1 warning sign for Carlisle Companies you should be aware of.

If you are no longer interested in Carlisle Companies, 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.