Stock Analysis

When Should You Buy Envestnet, Inc. (NYSE:ENV)?

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NYSE:ENV
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Envestnet, Inc. (NYSE:ENV), is not the largest company out there, but it saw a decent share price growth in the teens level on the NYSE over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Envestnet’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Envestnet

What's The Opportunity In Envestnet?

Great news for investors – Envestnet is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $59.60, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Envestnet’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.

What kind of growth will Envestnet generate?

earnings-and-revenue-growth
NYSE:ENV Earnings and Revenue Growth December 3rd 2023

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. With revenues expected to grow by a double-digit 24% over the next couple of years, the outlook is positive for Envestnet. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since ENV is currently undervalued, it may be a great time to accumulate more of 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 ENV for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ENV. 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.

It can be quite valuable to consider what analysts expect for Envestnet from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

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

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