Monarch Casino & Resort, Inc. (NASDAQ:MCRI), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Monarch Casino & Resort’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
What Is Monarch Casino & Resort Worth?
Great news for investors – Monarch Casino & Resort is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $108.12, but it is currently trading at US$81.73 on the share market, meaning that there is still an opportunity to buy now. However, given that Monarch Casino & Resort’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Monarch Casino & Resort?
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. Monarch Casino & Resort's earnings growth are expected to be in the teens in the upcoming years, 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? Since MCRI is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on MCRI for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MCRI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Diving deeper into the forecasts for Monarch Casino & Resort mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts.
If you are no longer interested in Monarch Casino & Resort, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
What are the risks and opportunities for Monarch Casino & Resort?
Trading at 16.9% below our estimate of its fair value
Earnings are forecast to grow 5.08% per year
Earnings grew by 32.9% over the past year
No risks detected for MCRI from our risks checks.
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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.