Should You Buy Rockwell Collins Inc (NYSE:COL) Now?
Today we’re going to take a look at the well-established Rockwell Collins Inc (NYSE:COL). The company’s stock saw its share price hover around a small range of $133.24 to $139.41 over the last few weeks. But is this actually reflective of the share value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Rockwell Collins’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 Rockwell Collins
What’s the opportunity in Rockwell Collins?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 12% above my intrinsic value, which means if you buy Rockwell Collins today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $119.25, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, it seems like Rockwell Collins’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
What kind of growth will Rockwell Collins generate?
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. With profit expected to grow by 67.81% over the next couple of years, the future seems bright for Rockwell Collins. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? COL’s optimistic 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 financial strength of the company. 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 COL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Rockwell Collins. You can find everything you need to know about Rockwell Collins in the latest infographic research report. If you are no longer interested in Rockwell Collins, 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.
