Is There Now An Opportunity In TrustCo Bank Corp NY (NASDAQ:TRST)?
TrustCo Bank Corp NY (NASDAQ:TRST), operating in the financial services industry based in United States, saw its share price hover around a small range of $8.6 to $9.3 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at TrustCo Bank Corp NY’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for TrustCo Bank Corp NY
What is TrustCo Bank Corp NY worth?
The stock seems fairly valued at the moment according to my relative valuation model. I’ve used the price-to-equity ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 17.76x is currently trading slightly below its industry peers’ ratio of 18.51x, which means if you buy TrustCo Bank Corp NY today, you’d be paying a fair price for it. And if you believe that TrustCo Bank Corp NY should be trading at this level in the long run, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since TrustCo Bank Corp NY’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 kind of growth will TrustCo Bank Corp NY generate?
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. In the upcoming year, TrustCo Bank Corp NY’s earnings are expected to increase by 22.38%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? TRST’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 track record of its management team. Have these factors changed since the last time you looked at TRST? Will you have enough conviction to buy should the price fluctuate below the true value?
Are you a potential investor? If you’ve been keeping an eye on TRST, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic forecast is encouraging for TRST, 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on TrustCo Bank Corp NY. You can find everything you need to know about TrustCo Bank Corp NY in the latest infographic research report. If you are no longer interested in TrustCo Bank Corp NY, 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 editorial-team@simplywallst.com.