Is It Too Late To Consider Buying Howard Hughes Holdings Inc. (NYSE:HHH)?

Howard Hughes Holdings Inc. (NYSE:HHH), is not the largest company out there, but it saw a significant share price rise of 25% in the past couple of months on the NYSE. While good news for shareholders, the company has traded much higher in the past year. As a US$3.5b market-cap stock, it seems odd Howard Hughes Holdings is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Today we will analyse the most recent data on Howard Hughes Holdings’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Howard Hughes Holdings

What Is Howard Hughes Holdings Worth?

Great news for investors – Howard Hughes Holdings is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $122.03, but it is currently trading at US$74.36 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Howard Hughes Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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 Howard Hughes Holdings look like?

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. In Howard Hughes Holdings' case, its revenues over the next few years are expected to grow by 64%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since HHH is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on HHH for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HHH. 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 1 warning sign for Howard Hughes Holdings you should be aware of.

If you are no longer interested in Howard Hughes Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com