Is It Too Late To Consider Buying Casella Waste Systems, Inc. (NASDAQ:CWST)?

While Casella Waste Systems, Inc. (NASDAQ:CWST) might not have the largest market cap around , it saw a decent share price growth of 10% on the NASDAQGS over the last few months. The recent jump in the share price has meant that the company is trading around its 52-week high. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Casella Waste Systems’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Casella Waste Systems

Is Casella Waste Systems Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 18.16% above our intrinsic value, which means if you buy Casella Waste Systems today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $88.65, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Casella Waste Systems’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Casella Waste Systems 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 more than double over the next couple of years, the future seems bright for Casella Waste Systems. 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? It seems like the market has already priced in CWST’s positive outlook, 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 CWST, 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've found that Casella Waste Systems has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

If you are no longer interested in Casella Waste Systems, 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.