Should You Think About Buying Star Bulk Carriers Corp. (NASDAQ:SBLK) Now?

Star Bulk Carriers Corp. (NASDAQ:SBLK), is not the largest company out there, but it saw a decent share price growth of 12% on the NASDAQGS over the last few months. The company is inching closer to its yearly highs following the recent share price climb. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Star Bulk Carriers’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Star Bulk Carriers

What's The Opportunity In Star Bulk Carriers?

Great news for investors – Star Bulk Carriers is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $36.85, but it is currently trading at US$23.02 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Star Bulk Carriers’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 Star Bulk Carriers?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for Star Bulk Carriers. 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? Since SBLK is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 SBLK for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SBLK. 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 while earnings quality is important, it's equally important to consider the risks facing Star Bulk Carriers at this point in time. You'd be interested to know, that we found 5 warning signs for Star Bulk Carriers and you'll want to know about them.

If you are no longer interested in Star Bulk Carriers, 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.