Should You Investigate Forward Air Corporation (NASDAQ:FWRD) At US$97.81?

Forward Air Corporation (NASDAQ:FWRD), 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$115 at one point, and dropping to the lows of US$97.81. 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 Forward Air's current trading price of US$97.81 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Forward Air’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 Forward Air

Is Forward Air Still Cheap?

Good news, investors! Forward Air is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $160.66, but it is currently trading at US$97.81 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Forward Air’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.

Can we expect growth from Forward Air?

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. However, with a relatively muted profit growth of 2.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Forward Air, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since FWRD 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 FWRD for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FWRD. 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 investment decision.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Forward Air.

If you are no longer interested in Forward Air, 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.