At $3.03, Is It Time To Buy ReneSola Ltd (NYSE:SOL)?

ReneSola Ltd (NYSE:SOL), a semiconductors and semiconductor equipment company based in China, received a lot of attention from a substantial price increase on the NYSE in the over the last few months. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at ReneSola’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for ReneSola

What's the opportunity in ReneSola?

Great news for investors – ReneSola is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $11.79, but it is currently trading at $3.03 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, ReneSola’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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 ReneSola generate?

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. With profit expected to grow by 75.08% over the next year, the near-term future seems bright for ReneSola. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since ReneSola is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 ReneSola for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ReneSola. 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 buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on ReneSola. You can find everything you need to know about ReneSola in the latest infographic research report. If you are no longer interested in ReneSola, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.