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

Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$88.94 and falling to the lows of US$61.42. 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$61.59 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.

Check out our latest analysis for Atlas Air Worldwide Holdings

Is Atlas Air Worldwide Holdings still cheap?

Atlas Air Worldwide Holdings appears to be overvalued by 24% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$61.59 on the market compared to my intrinsic value of $49.50. Not the best news for investors looking to buy! If you like the stock, you may want to keep an eye out for a potential price decline in the future. 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.

What kind of growth will Atlas Air Worldwide Holdings generate?

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. Though in the case of Atlas Air Worldwide Holdings, it is expected to deliver a negative earnings growth of -19%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What this means for you:

Are you a shareholder? If you believe AAWW should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the uncertainty from negative growth in the future, this could be the right time to reduce your total portfolio risk. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on AAWW for some time, now may not be the best time to enter into the stock. Price climbed passed its true value, in addition to a risky future outlook. However, there are also other important factors which we haven’t considered today, such as the track record of its management. Should the price fall in the future, will you be well-informed enough to buy?

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. Case in point: We've spotted 3 warning signs for Atlas Air Worldwide Holdings you should be mindful of and 1 of these is a bit unpleasant.

If you are no longer interested in Atlas Air Worldwide 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.