SiteOne Landscape Supply, Inc. (NYSE:SITE), which is in the trade distributors business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NYSE. With many analysts covering the mid-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 SiteOne Landscape Supply’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Is SiteOne Landscape Supply still cheap?The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.53% above my intrinsic value, which means if you buy SiteOne Landscape Supply today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $60.78, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since SiteOne Landscape Supply’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What kind of growth will SiteOne Landscape Supply 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 profit expected to grow by 62% over the next couple of years, the future seems bright for SiteOne Landscape Supply. 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? SITE’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 track record of its management team. 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 SITE, now may not be the most optimal 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on SiteOne Landscape Supply. You can find everything you need to know about SiteOne Landscape Supply in the latest infographic research report. If you are no longer interested in SiteOne Landscape Supply, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.