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Should You Buy Silver Spring Networks Inc (SSNI) Now?

Silver Spring Networks Inc (NYSE:SSNI), a software company based in United States, saw a significant share price rise of over 20% in the past couple of months on the NYSE. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on SSNI’s outlook and valuation to see if the opportunity still exists. See our latest analysis for SSNI

What is SSNI worth?

According to my valuation model, SSNI seems to be fairly priced at around 4% above my intrinsic value, which means if you buy SSNI today, you’d be paying a relatively fair price for it. And if you believe SSNI’s true value is $15.52, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that SSNI’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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of SSNI look like?

NYSE:SSNI Future Profit Nov 30th 17
NYSE:SSNI Future Profit Nov 30th 17

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 SSNI future expectations. In the upcoming year, SSNI’s earnings are expected to increase by 58.87%, 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? SSNI’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 SSNI? 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 SSNI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for SSNI, 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 Silver Spring Networks. You can find everything you need to know about SSNI in the latest infographic research report. If you are no longer interested in Silver Spring Networks, 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.

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