Is Now The Time To Look At Buying Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)?
Seanergy Maritime Holdings Corp. (NASDAQ:SHIP), is not the largest company out there, but it led the NASDAQCM gainers with a relatively large price hike in the past couple of weeks. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Seanergy Maritime Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Seanergy Maritime Holdings
Is Seanergy Maritime Holdings Still Cheap?
Seanergy Maritime Holdings appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Seanergy Maritime Holdings’s ratio of 75.12x is above its peer average of 9.71x, which suggests the stock is trading at a higher price compared to the Shipping industry. In addition to this, it seems like Seanergy Maritime Holdings’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Seanergy Maritime 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. With profit expected to more than double over the next couple of years, the future seems bright for Seanergy Maritime Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? It seems like the market has well and truly priced in SHIP’s positive outlook, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe SHIP should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on SHIP for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for SHIP, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
If you want to dive deeper into Seanergy Maritime Holdings, you'd also look into what risks it is currently facing. For example, Seanergy Maritime Holdings has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.
If you are no longer interested in Seanergy Maritime 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.
