Is Now An Opportune Moment To Examine LSB Industries, Inc. (NYSE:LXU)?

LSB Industries, Inc. (NYSE:LXU), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on LSB Industries’s outlook and valuation to see if the opportunity still exists.

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What's The Opportunity In LSB Industries?

Good news, investors! LSB Industries is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $13.62, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, LSB Industries’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

See our latest analysis for LSB Industries

Can we expect growth from LSB Industries?

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. However, with a relatively muted revenue growth of 4.3% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for LSB Industries, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since LXU is currently undervalued, it may be a great time to increase your holdings in the stock. 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 LXU for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LXU. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

It can be quite valuable to consider what analysts expect for LSB Industries from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in LSB Industries, 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.