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When Should You Buy Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA)?

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Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA), 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 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? Today I will analyse the most recent data on Loma Negra Compañía Industrial Argentina Sociedad Anónima’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Loma Negra Compañía Industrial Argentina Sociedad Anónima

Is Loma Negra Compañía Industrial Argentina Sociedad Anónima still cheap?

Good news, investors! Loma Negra Compañía Industrial Argentina Sociedad Anónima is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $6.10, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Loma Negra Compañía Industrial Argentina Sociedad Anónima’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.

What does the future of Loma Negra Compañía Industrial Argentina Sociedad Anónima look like?

earnings-and-revenue-growth
earnings-and-revenue-growth

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 Loma Negra Compañía Industrial Argentina Sociedad Anónima. 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 LOMA is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 LOMA for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LOMA. 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 buy.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Loma Negra Compañía Industrial Argentina Sociedad Anónima you should know about.

If you are no longer interested in Loma Negra Compañía Industrial Argentina Sociedad Anónima, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. 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.

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