Should You Investigate CBIZ, Inc. (NYSE:CBZ) At US$63.95?

CBIZ, Inc. (NYSE:CBZ), might not be a large cap stock, but it led the NYSE gainers with a relatively large price hike in the past couple of weeks. The company is now trading at yearly-high levels following the recent surge in its share price. As a well-established company, which tends to be well-covered 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 take a look at CBIZ’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for CBIZ

What's The Opportunity In CBIZ?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 19% below our intrinsic value, which means if you buy CBIZ today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $78.73, then there’s not much of an upside to gain from mispricing. In addition to this, CBIZ has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from CBIZ?

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. Though in the case of CBIZ, it is expected to deliver a relatively unexciting earnings growth of 6.8%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for CBIZ, at least in the near term.

What This Means For You

Are you a shareholder? CBZ’s 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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on CBZ, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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.

If you'd like to know more about CBIZ as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 2 warning signs for CBIZ you should be aware of.

If you are no longer interested in CBIZ, 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.