Should You Think About Buying Glatfelter Corporation (NYSE:GLT) Now?

Glatfelter Corporation (NYSE:GLT), might not be a large cap stock, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$12.53 and falling to the lows of US$6.03. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Glatfelter's current trading price of US$6.03 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 Glatfelter’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Glatfelter

Is Glatfelter Still Cheap?

According to my valuation model, Glatfelter seems to be fairly priced at around 11% below my intrinsic value, which means if you buy Glatfelter today, you’d be paying a fair price for it. And if you believe the company’s true value is $6.81, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Glatfelter’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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.

What does the future of Glatfelter look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With revenues expected to grow by a double-digit 26% in the upcoming year, the outlook is positive for Glatfelter. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in GLT’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. 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 GLT, now may not be the most advantageous 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 Glatfelter, you'd also look into what risks it is currently facing. Case in point: We've spotted 2 warning signs for Glatfelter you should be aware of.

If you are no longer interested in Glatfelter, 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.