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Is There Now An Opportunity In Umpqua Holdings Corporation (NASDAQ:UMPQ)?

Simply Wall St

Umpqua Holdings Corporation (NASDAQ:UMPQ), operating in the financial services industry based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $17.54 at one point, and dropping to the lows of $15.28. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Umpqua Holdings's current trading price of $15.78 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Umpqua Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Umpqua Holdings

Is Umpqua Holdings still cheap?

Good news, investors! Umpqua Holdings is still a bargain right now. According to my valuation, the intrinsic value for the stock is $21.11, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Umpqua Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Umpqua Holdings look like?

NasdaqGS:UMPQ Past and Future Earnings, August 21st 2019

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 profit growth of 1.8% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Umpqua Holdings, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since UMPQ is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on UMPQ 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 UMPQ. 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 buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Umpqua Holdings. You can find everything you need to know about Umpqua Holdings in the latest infographic research report. If you are no longer interested in Umpqua Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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.

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. Thank you for reading.