Air Industries Group (AMEX:AIRI), a capital goods company based in United States, saw a decent share price growth in the teens level on the AMEX over the last few months. Less covered, small-stocks like AIRI sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could AIRI still be trading at a low price relative to its actual value? Let’s take a look at AIRI’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Air Industries Group
What is AIRI worth?
Good news, investors! AIRI is still a bargain right now. According to my valuation, the intrinsic value for the stock is $2.46 which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. AIRI’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 AIRI?
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 AIRI future expectations. With profit expected to grow by 86.52% over the next year, the near-term future seems bright for AIRI. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since AIRI is currently undervalued, it may be a great time to increase 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 AIRI for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AIRI. But before you make any investment decisions, consider other factors such as the track record of its management team, 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 Air Industries Group. You can find everything you need to know about AIRI in the latest infographic research report. If you are no longer interested in Air Industries Group, 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.