Is Now An Opportune Moment To Examine BrightView Holdings, Inc. (NYSE:BV)?
BrightView Holdings, Inc. (NYSE:BV), might not be a large cap stock, but it saw a significant share price rise of 26% in the past couple of months on the NYSE. The company is now trading at yearly-high levels following the recent surge in its share price. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on BrightView Holdings’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for BrightView Holdings
What's The Opportunity In BrightView Holdings?
Great news for investors – BrightView Holdings is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $13.36, but it is currently trading at US$9.41 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because BrightView Holdings’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will BrightView Holdings generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a relatively muted revenue growth of 6.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for BrightView Holdings, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since BV 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 BV 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 BV. 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 investment decision.
Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. Luckily, you can check out what analysts are forecasting by clicking here.
If you are no longer interested in BrightView 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.
