At US$27.32, Is It Time To Put Schneider National, Inc. (NYSE:SNDR) On Your Watch List?

Schneider National, Inc. (NYSE:SNDR), is not the largest company out there, but it saw a decent share price growth in the teens level on the NYSE over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Schneider National’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Schneider National

What's The Opportunity In Schneider National?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 10.34% above my intrinsic value, which means if you buy Schneider National today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $24.76, there’s only an insignificant downside when the price falls to its real value. In addition to this, Schneider National has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Schneider National?

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. Though in the case of Schneider National, it is expected to deliver a negative earnings growth of -5.6%, 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, SNDR 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 optimal 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 SNDR for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The price seems 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 SNDR should the price fluctuate below its true value.

If you want to dive deeper into Schneider National, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Schneider National.

If you are no longer interested in Schneider National, 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.