Stock Analysis

When Should You Buy The Howard Hughes Corporation (NYSE:HHC)?

  •  Updated
NYSE:HHC
Source: Shutterstock

The Howard Hughes Corporation (NYSE:HHC), might not be a large cap stock, but it saw a decent share price growth in the teens level on the NYSE over the last few months. As a US$3.6b market cap stock, it seems odd Howard Hughes is not more well-covered by analysts. Although, there is more of an opportunity for mispricing in stocks with low coverage, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Howard Hughes’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Howard Hughes

What Is Howard Hughes Worth?

Good news, investors! Howard Hughes is still a bargain right now. According to my valuation, the intrinsic value for the stock is $117.55, 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, Howard Hughes’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 look like?

earnings-and-revenue-growth
NYSE:HHC Earnings and Revenue Growth August 11th 2022

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. However, with a negative profit growth of -7.5% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Howard Hughes. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although HHC is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to HHC, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on HHC for a while, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

So while earnings quality is important, it's equally important to consider the risks facing Howard Hughes at this point in time. Be aware that Howard Hughes is showing 2 warning signs in our investment analysis and 1 of those is potentially serious...

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

Valuation is complex, but we're helping make it simple.

Find out whether Howard Hughes is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

About NYSE:HHC

Howard Hughes

The Howard Hughes Corporation owns, manages, and develops commercial, residential, and hospitality operating properties in the United States.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation3
Future Growth1
Past Performance2
Financial Health2
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Fair value with questionable track record.