Is Now The Time To Look At Buying Hub Group, Inc. (NASDAQ:HUBG)?

Hub Group, Inc. (NASDAQ:HUBG), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$90.13 and falling to the lows of US$77.21. 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 Hub Group's current trading price of US$78.54 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 Hub Group’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 Hub Group

Is Hub Group Still Cheap?

According to my valuation model, Hub Group seems to be fairly priced at around 0.27% above my intrinsic value, which means if you buy Hub Group today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $78.33, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Hub Group’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Hub Group look like?

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. Though in the case of Hub Group, it is expected to deliver a negative earnings growth of -13%, 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? Currently, HUBG appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on HUBG for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on HUBG should the price fluctuate below its true value.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. In terms of investment risks, we've identified 1 warning sign with Hub Group, and understanding it should be part of your investment process.

If you are no longer interested in Hub Group, 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.