Civeo Corporation (NYSE:CVEO), a commercial services company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $4.08 and falling to the lows of $3.02. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Civeo’s current trading price of $3.27 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Civeo’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Civeo
Is Civeo still cheap?Civeo appears to be overvalued by 24% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$3.27 on the market compared to my intrinsic value of $2.64. This means that the opportunity to buy Civeo at a good price has disappeared! But, is there another opportunity to buy low in the future? Since Civeo’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Civeo?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. In the upcoming year, Civeo’s earnings are expected to increase by 45.79%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? CVEO’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe CVEO 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 an eye on CVEO for a while, 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 optimistic prospect is encouraging for CVEO, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Civeo. You can find everything you need to know about Civeo in the latest infographic research report. If you are no longer interested in Civeo, you can use our free platform to see my list of over 50 other stocks with a high growth potential.