Light & Wonder (LNWO): Is There Still Value After Recent Share Price Rebound?

Light & Wonder (OTCPK:LNWO) shares have climbed over the past month, gaining momentum thanks to steady revenue growth and improved net income. Investors are watching recent results closely, curious about what is driving the company’s performance this quarter.

See our latest analysis for Light & Wonder.

Momentum has clearly picked up for Light & Wonder, with an 18.9% gain in the 1-month share price return sending the stock back into positive territory for the year. While this surge marks a shift from earlier weakness, the 1-year total shareholder return remains negative. This highlights both the stock's recent rebound and the volatility investors have faced over the longer term.

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With share prices rebounding and fundamentals improving, the central question is whether Light & Wonder is still trading at a discount. Alternatively, recent gains may indicate that the market already reflects strong future growth prospects.

Most Popular Narrative: 14.7% Undervalued

Light & Wonder's most closely followed valuation narrative estimates a fair value that is comfortably ahead of the current share price. The recent close at $90.20 sits more than 14% below this consensus estimate, drawing attention to what could be a sizable gap in market expectations.

Accelerating recurring revenue streams, combined with disciplined operating and capital allocation—for example, an expanded $1.5B buyback program—set up sustained improvements in earnings per share and long-term free cash flow generation.

Read the complete narrative.

Want to know what gives this valuation its edge? The real story lies in bold forecasts for rapid margin expansion and ambitious profit growth. One pivotal operational shift could move the earnings needle in ways most investors would not expect. Craving the hard numbers behind this bullish outlook? Unpack the underlying projections fueling the narrative to see what drives this upside.

Result: Fair Value of $105.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory challenges and sustained competition from digital entrants could still disrupt forecasts. This may put upward pressure on costs and long-term margins.

Find out about the key risks to this Light & Wonder narrative.

Build Your Own Light & Wonder Narrative

If you see the numbers differently or want to put your own ideas to the test, it’s easy. Go hands-on and Do it your way in just a few minutes.

A great starting point for your Light & Wonder research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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