Tailored Brands, Inc. (NYSE:TLRD), which is in the specialty retail business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$7.17 at one point, and dropping to the lows of US$4.34. 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 Tailored Brands's current trading price of US$4.54 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 Tailored Brands’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 Tailored Brands
Is Tailored Brands still cheap?
Good news, investors! Tailored Brands is still a bargain right now. According to my valuation, the intrinsic value for the stock is $6.47, 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, Tailored Brands’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 kind of growth will Tailored Brands generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Though in the case of Tailored Brands, it is expected to deliver a relatively unexciting earnings growth of 0.5%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Tailored Brands, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since TLRD 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 TLRD for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TLRD. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Tailored Brands. You can find everything you need to know about Tailored Brands in the latest infographic research report. If you are no longer interested in Tailored Brands, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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