What Does WillScot Mobile Mini Holdings Corp.'s (NASDAQ:WSC) Share Price Indicate?
WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NASDAQCM over the last few months. The recent jump in the share price has meant that the company is trading at close to its 52-week high. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at WillScot Mobile Mini Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for WillScot Mobile Mini Holdings
What Is WillScot Mobile Mini Holdings Worth?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 17% below our intrinsic value, which means if you buy WillScot Mobile Mini Holdings today, you’d be paying a fair price for it. And if you believe that the stock is really worth $61.84, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since WillScot Mobile Mini Holdings’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of WillScot Mobile Mini Holdings 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. With profit expected to grow by 94% over the next couple of years, the future seems bright for WillScot Mobile Mini Holdings. 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? WSC’s optimistic future growth appears to have been factored into the current share price, 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 an eye on WSC, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you want to dive deeper into WillScot Mobile Mini Holdings, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for WillScot Mobile Mini Holdings and we think they deserve your attention.
If you are no longer interested in WillScot Mobile Mini Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
