At US$2.56, Is It Time To Put Orion Group Holdings, Inc. (NYSE:ORN) On Your Watch List?

Orion Group Holdings, Inc. (NYSE:ORN), is not the largest company out there, but it saw a decent share price growth in the teens level on the NYSE over the last few months. 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. But what if there is still an opportunity to buy? Let’s take a look at Orion Group Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Orion Group Holdings

Is Orion Group Holdings still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 12.30% above my intrinsic value, which means if you buy Orion Group Holdings today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $2.28, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Orion Group Holdings has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Orion Group Holdings 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. With revenues expected to grow by a double-digit 20% over the next couple of years, the outlook is positive for Orion Group Holdings. If the level of expenses is able to be maintained, 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? ORN’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 an eye on ORN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. In terms of investment risks, we've identified 2 warning signs with Orion Group Holdings, and understanding them should be part of your investment process.

If you are no longer interested in Orion Group Holdings, 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.