Is There Now An Opportunity In Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW)?

Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$75.58 at one point, and dropping to the lows of US$63.43. 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 Atlas Air Worldwide Holdings' current trading price of US$67.78 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 Atlas Air Worldwide Holdings’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 Atlas Air Worldwide Holdings

What is Atlas Air Worldwide Holdings worth?

Good news, investors! Atlas Air Worldwide Holdings is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $90.74, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Atlas Air Worldwide Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Atlas Air Worldwide 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. 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 an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Atlas Air Worldwide Holdings, at least in the near future.

What this means for you:

Are you a shareholder? Although AAWW 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 AAWW, 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 tabs on AAWW for some time, 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.

If you'd like to know more about Atlas Air Worldwide Holdings as a business, it's important to be aware of any risks it's facing. When we did our research, we found 4 warning signs for Atlas Air Worldwide Holdings (1 doesn't sit too well with us!) that we believe deserve your full attention.

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This article by Simply Wall St is general in nature. 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.
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