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When Should You Buy CatchMark Timber Trust, Inc. (NYSE:CTT)?

Willa Russo

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CatchMark Timber Trust, Inc. (NYSE:CTT), which is in the reits business, and is based in United States, led the NYSE gainers with a relatively large price hike in the past couple of weeks. As a 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 CatchMark Timber Trust’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for CatchMark Timber Trust

What’s the opportunity in CatchMark Timber Trust?

Great news for investors – CatchMark Timber Trust is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $13.7, but it is currently trading at US$9.30 on the share market, meaning that there is still an opportunity to buy now. However, given that CatchMark Timber Trust’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from CatchMark Timber Trust?

NYSE:CTT Future Profit February 13th 19

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. CatchMark Timber Trust’s earnings over the next few years are expected to increase by 70%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since CTT 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on CTT 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 CTT. 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 CatchMark Timber Trust. You can find everything you need to know about CatchMark Timber Trust in the latest infographic research report. If you are no longer interested in CatchMark Timber Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.