Is It Too Late To Consider Buying EnPro Industries, Inc. (NYSE:NPO)?

EnPro Industries, Inc. (NYSE:NPO), might not be a large cap stock, but it saw a double-digit share price rise of over 10% 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 company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine EnPro Industries’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for EnPro Industries

What's The Opportunity In EnPro Industries?

Good news, investors! EnPro Industries is still a bargain right now. According to my valuation, the intrinsic value for the stock is $159.75, but it is currently trading at US$127 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because EnPro Industries’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of EnPro Industries look like?

Future outlook is an important aspect when you’re 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 let’s also take a look at the company's future expectations. However, with a relatively muted revenue growth of 6.3% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for EnPro Industries, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since NPO 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on NPO 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 NPO. 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 investment decision.

If you'd like to know more about EnPro Industries as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 1 warning sign with EnPro Industries, and understanding this should be part of your investment process.

If you are no longer interested in EnPro Industries, 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.