Should You Think About Buying Casella Waste Systems, Inc. (NASDAQ:CWST) Now?

Casella Waste Systems, Inc. (NASDAQ:CWST), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$90.45 and falling to the lows of US$77.56. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Casella Waste Systems' current trading price of US$77.56 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Casella Waste Systems’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Casella Waste Systems

Is Casella Waste Systems Still Cheap?

The stock is currently trading at US$77.56 on the share market, which means it is overvalued by 26% compared to my intrinsic value of $61.36. This means that the buying opportunity has probably disappeared for now. In addition to this, it seems like Casella Waste Systems’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What does the future of Casella Waste Systems 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. Casella Waste Systems' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in CWST’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe CWST should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on CWST for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for CWST, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Casella Waste Systems, you'd also look into what risks it is currently facing. For example - Casella Waste Systems has 4 warning signs we think you should be aware of.

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.