What Does AGNC Investment Corp’s (AGNC) Share Price Indicate?
AGNC Investment Corp (NASDAQ:AGNC), a mortgage real estate investment trusts (reits) company based in United States, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $21.85 and falling to the lows of $19.43. 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 AGNC’s current trading price of $20.24 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 AGNC’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 AGNC Investment
What’s the opportunity in AGNC?
Great news for investors – AGNC is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $28.72, but it is currently trading at $20.24 on the share market, meaning that there is still an opportunity to buy now. AGNC’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from AGNC?
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. 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 AGNC future expectations. Though in the case of AGNC, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? Although AGNC is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to AGNC, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on AGNC for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on AGNC Investment. You can find everything you need to know about AGNC in the latest infographic research report. If you are no longer interested in AGNC Investment, 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.
