Is Now The Time To Look At Buying CatchMark Timber Trust, Inc. (NYSE:CTT)?
CatchMark Timber Trust, Inc. (NYSE:CTT), which is in the reits business, and is based in United States, led the NYSE gainers with a relatively large price hike in the past couple of weeks. 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. But what if there is still an opportunity to buy? Today I will analyse the most recent data on CatchMark Timber Trust’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for CatchMark Timber Trust
What's the opportunity in CatchMark Timber Trust?
Good news, investors! CatchMark Timber Trust is still a bargain right now. According to my valuation, the intrinsic value for the stock is $12.58, but it is currently trading at US$7.70 on the share market, meaning that there is still an opportunity to buy now. However, given that CatchMark Timber Trust’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 CatchMark Timber Trust 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. CatchMark Timber Trust’s earnings over the next few years are expected to increase by 90%, 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? Since CTT is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 CTT for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CTT. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on CatchMark Timber Trust. You can find everything you need to know about CatchMark Timber Trust in the latest infographic research report. If you are no longer interested in CatchMark Timber Trust, 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.
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