Why Casella Waste Systems, Inc. (NASDAQ:CWST) Could Be Worth Watching

Casella Waste Systems, Inc. (NASDAQ:CWST), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$101 and falling to the lows of US$90.06. 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$97.48 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.

See our latest analysis for Casella Waste Systems

What Is Casella Waste Systems Worth?

According to our valuation model, Casella Waste Systems seems to be fairly priced at around 16.33% above our intrinsic value, which means if you buy Casella Waste Systems today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $83.80, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Casella Waste Systems has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of Casella Waste Systems look like?

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. 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? CWST’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 CWST, now may not be the most advantageous 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Be aware that Casella Waste Systems is showing 5 warning signs in our investment analysis and 1 of those shouldn't be ignored...

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.