Should You Investigate Spectrum Brands Holdings, Inc. (NYSE:SPB) At US$73.80?
Spectrum Brands Holdings, Inc. (NYSE:SPB), is not the largest company out there, but it led the NYSE gainers with a relatively large price hike in the past couple of weeks. 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? Today I will analyse the most recent data on Spectrum Brands Holdings’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Spectrum Brands Holdings
What's The Opportunity In Spectrum Brands Holdings?
Good news, investors! Spectrum Brands Holdings is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $116.42, but it is currently trading at US$73.80 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Spectrum Brands Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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 Spectrum Brands Holdings look like?
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 the company's future expectations. Though in the case of Spectrum Brands Holdings, it is expected to deliver a relatively unexciting top-line growth of 6.0% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since SPB is currently undervalued, it may be a great time to increase your holdings in the stock. 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 SPB for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SPB. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
If you want to dive deeper into Spectrum Brands Holdings, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Spectrum Brands Holdings and we think they deserve your attention.
If you are no longer interested in Spectrum Brands Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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