Windstream Holdings Inc (NASDAQ:WIN), a telecommunication services company based in United States, received a lot of attention from a substantial price movement on the NasdaqGS in the over the last few months, increasing to $4.21 at one point, and dropping to the lows of $1.89. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether WIN's current trading price of $1.95 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 WIN’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for WIN
What's the opportunity in WIN?
Great news for investors – WIN is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $35.39 which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, WIN’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because WIN’s stock is less volatile than the wider market given its low beta.
Can we expect growth from WIN?
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 WIN future expectations. WIN’s earnings over the next few years are expected to increase by 54.33%, 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 WIN is currently undervalued, it may be a great time to accumulate more of 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on WIN 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 WIN. 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 investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Windstream Holdings. You can find everything you need to know about WIN in the latest infographic research report. If you are no longer interested in Windstream Holdings, 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.