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When Should You Buy Triumph Bancorp, Inc. (NASDAQ:TBK)?

Bruce Howe

Triumph Bancorp, Inc. (NASDAQ:TBK), operating in the financial services industry based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $38.48 and falling to the lows of $27.64. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Triumph Bancorp’s current trading price of $29.58 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Triumph Bancorp’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 Triumph Bancorp

Is Triumph Bancorp still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.68% above my intrinsic value, which means if you buy Triumph Bancorp today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $28.53, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Triumph Bancorp’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Triumph Bancorp generate?

NASDAQGS:TBK Future Profit January 25th 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. Triumph Bancorp’s earnings over the next few years are expected to increase by 76%, 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? TBK’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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on TBK, now may not be the most advantageous 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 Triumph Bancorp. You can find everything you need to know about Triumph Bancorp in the latest infographic research report. If you are no longer interested in Triumph Bancorp, 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.