Why SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Could Be Worth Watching

Today we're going to take a look at the well-established SS&C Technologies Holdings, Inc. (NASDAQ:SSNC). The company's stock received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at SS&C Technologies Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for SS&C Technologies Holdings

What Is SS&C Technologies Holdings Worth?

Good news, investors! SS&C Technologies Holdings is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $83.84, but it is currently trading at US$62.93 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because SS&C Technologies Holdings’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from SS&C Technologies Holdings?

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. SS&C Technologies Holdings' earnings over the next few years are expected to increase by 38%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since SSNC 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 capital structure to consider, which could explain the current undervaluation.

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

So while earnings quality is important, it's equally important to consider the risks facing SS&C Technologies Holdings at this point in time. While conducting our analysis, we found that SS&C Technologies Holdings has 1 warning sign and it would be unwise to ignore this.

If you are no longer interested in SS&C Technologies Holdings, 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.