What Is P.A.M. Transportation Services, Inc.'s (NASDAQ:PTSI) Share Price Doing?

While P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) might not have the largest market cap around , it saw significant share price movement during recent months on the NASDAQGM, rising to highs of US$22.12 and falling to the lows of US$15.58. 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 P.A.M. Transportation Services' current trading price of US$15.70 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 P.A.M. Transportation Services’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for P.A.M. Transportation Services

What's The Opportunity In P.A.M. Transportation Services?

The stock is currently trading at US$15.70 on the share market, which means it is overvalued by 22% compared to our intrinsic value of $12.87. 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. Since P.A.M. Transportation Services’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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.

What kind of growth will P.A.M. Transportation Services 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. With profit expected to more than double in the upcoming, the future appears to be extremely bright for P.A.M. Transportation Services. 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? PTSI’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe PTSI 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. 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 an eye on PTSI for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for PTSI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into P.A.M. Transportation Services, you'd also look into what risks it is currently facing. For example, P.A.M. Transportation Services has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

If you are no longer interested in P.A.M. Transportation Services, 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.