What Is Darling Ingredients Inc’s (NYSE:DAR) Share Price Doing?
Darling Ingredients Inc (NYSE:DAR), a food company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $19.46 and falling to the lows of $16.38. 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 Darling Ingredients’s current trading price of $17.5 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Darling Ingredients’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Darling Ingredients
Is Darling Ingredients still cheap?
Great news for investors – Darling Ingredients is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $24.32, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Darling Ingredients’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 Darling Ingredients look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. Darling Ingredients’s earnings over the next few years are expected to increase by 62.15%, 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 DAR 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on DAR 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 DAR. 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 buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Darling Ingredients. You can find everything you need to know about Darling Ingredients in the latest infographic research report. If you are no longer interested in Darling Ingredients, 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.
