While Moog Inc. (NYSE:MOG.A) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the companyâs outlook is already priced into the stock. However, what if the stock is still a bargain? Letâs take a look at Moogâs outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Moog
What Is Moog Worth?
According to my valuation model, Moog seems to be fairly priced at around 0.7% below my intrinsic value, which means if you buy Moog today, youâd be paying a fair price for it. And if you believe the companyâs true value is $89.99, then there isnât much room for the share price grow beyond what itâs currently trading. So, is there another chance to buy low in the future? Given that Moogâs 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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Moog look like?
Future outlook is an important aspect when youâre 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 letâs also take a look at the company's future expectations. With profit expected to grow by 35% over the next couple of years, the future seems bright for Moog. 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? MOG.Aâs 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 havenât considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If youâve been keeping an eye on MOG.A, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means itâs worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Moog.
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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.
About NYSE:MOG.A
Moog
Designs, manufactures, and integrates precision motion and fluid controls and controls systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets in the United States and internationally.
Solid track record with excellent balance sheet.