Associated Banc-Corp (NYSE:ASB), operating in the financial services industry based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $27.8 at one point, and dropping to the lows of $20.8. 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 Associated Banc-Corp’s current trading price of $20.91 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 Associated Banc-Corp’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What’s the opportunity in Associated Banc-Corp?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 11.66% above my intrinsic value, which means if you buy Associated Banc-Corp today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $18.73, then there isn’t really any room for the share price grow beyond what it’s currently trading. What’s more, Associated Banc-Corp’s share price may be more stable over time (relative to the market), as indicated by its low beta.
Can we expect growth from Associated Banc-Corp?
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 the company’s future expectations. With profit expected to grow by 24% over the next couple of years, the future seems bright for Associated Banc-Corp. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? It seems like the market has already priced in ASB’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. 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 ASB, now may not be the most optimal 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 Associated Banc-Corp. You can find everything you need to know about Associated Banc-Corp in the latest infographic research report. If you are no longer interested in Associated Banc-Corp, 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 email@example.com.