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Peapack-Gladstone Financial Corporation (NASDAQ:PGC), 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 $29.39 at one point, and dropping to the lows of $25.28. 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 Peapack-Gladstone Financial's current trading price of $27.74 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Peapack-Gladstone Financial’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's the opportunity in Peapack-Gladstone Financial?
According to my valuation model, Peapack-Gladstone Financial seems to be fairly priced at around 16% below my intrinsic value, which means if you buy Peapack-Gladstone Financial today, you’d be paying a fair price for it. And if you believe that the stock is really worth $32.86, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Peapack-Gladstone Financial’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 does the future of Peapack-Gladstone Financial look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. However, with a relatively muted profit growth of 9.4% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Peapack-Gladstone Financial, at least in the short term.
What this means for you:
Are you a shareholder? PGC’s 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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on PGC, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining 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 Peapack-Gladstone Financial. You can find everything you need to know about Peapack-Gladstone Financial in the latest infographic research report. If you are no longer interested in Peapack-Gladstone Financial, 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 firstname.lastname@example.org. 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.