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Should You Investigate Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) At US$10.55?

Simply Wall St
·3 mins read

Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI), operating in the financial services industry based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Atlantic Capital Bancshares’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Atlantic Capital Bancshares

What is Atlantic Capital Bancshares worth?

Good news, investors! Atlantic Capital Bancshares is still a bargain right now. According to my valuation, the intrinsic value for the stock is $20.24, but it is currently trading at US$10.55 on the share market, meaning that there is still an opportunity to buy now. Atlantic Capital Bancshares’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.

What kind of growth will Atlantic Capital Bancshares generate?

NasdaqGS:ACBI Past and Future Earnings April 4th 2020
NasdaqGS:ACBI Past and Future Earnings April 4th 2020

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. Though in the case of Atlantic Capital Bancshares, it is expected to deliver a negative earnings growth of -16%, 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 ACBI 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 ACBI, 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 ACBI for some time, but hesitant on making the leap, I recommend you dig deeper 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 Atlantic Capital Bancshares. You can find everything you need to know about Atlantic Capital Bancshares in the latest infographic research report. If you are no longer interested in Atlantic Capital Bancshares, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.