Should You Investigate Werner Enterprises, Inc. (NASDAQ:WERN) At US$46.07?

While Werner Enterprises, Inc. (NASDAQ:WERN) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$49.45 at one point, and dropping to the lows of US$42.30. 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 Werner Enterprises' current trading price of US$46.07 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 Werner Enterprises’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 Werner Enterprises

What Is Werner Enterprises Worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 9.6% below my intrinsic value, which means if you buy Werner Enterprises today, you’d be paying a fair price for it. And if you believe the company’s true value is $50.96, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Werner Enterprises has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of Werner Enterprises look like?

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 5.4% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Werner Enterprises, at least in the short term.

What This Means For You

Are you a shareholder? WERN’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on WERN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing Werner Enterprises at this point in time. In terms of investment risks, we've identified 1 warning sign with Werner Enterprises, and understanding it should be part of your investment process.

If you are no longer interested in Werner Enterprises, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.