Should You Investigate CBIZ, Inc. (NYSE:CBZ) At US$78.72?

While CBIZ, Inc. (NYSE:CBZ) might not have the largest market cap around , it saw a significant share price rise of 24% in the past couple of months on the NYSE. The recent jump in the share price has meant that the company is trading at close to its 52-week high. 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, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on CBIZ’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for CBIZ

Is CBIZ Still Cheap?

According to our valuation model, CBIZ seems to be fairly priced at around 11% 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 $88.07, then there’s not much of an upside to gain from mispricing. What's more, CBIZ’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will CBIZ generate?

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. 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. CBIZ's earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? CBZ’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 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 tabs on CBZ, now may not be the most optimal 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into CBIZ, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 1 warning sign for CBIZ you should know about.

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.

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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.