What Is Arc Logistics Partners LP’s (NYSE:ARCX) Share Price Doing?
Arc Logistics Partners LP (NYSE:ARCX), an energy company based in United States, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of $16.34 to $16.79. However, is this the true valuation level of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Arc Logistics Partners’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 Arc Logistics Partners
What’s the opportunity in Arc Logistics Partners?
Great news for investors – Arc Logistics Partners is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $32.48, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Arc Logistics Partners’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Arc Logistics Partners look like?
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. However, with a relatively muted profit growth of 1.48% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Arc Logistics Partners, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since Arc Logistics Partners is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on Arc Logistics Partners for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Arc Logistics Partners. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Arc Logistics Partners. You can find everything you need to know about Arc Logistics Partners in the latest infographic research report. If you are no longer interested in Arc Logistics Partners, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
