What Is Sonoco Products Company's (NYSE:SON) Share Price Doing?
Sonoco Products Company (NYSE:SON), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$67.48 and falling to the lows of US$60.19. 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 Sonoco Products' current trading price of US$60.19 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 Sonoco Products’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Sonoco Products
What is Sonoco Products worth?
According to my valuation model, Sonoco Products seems to be fairly priced at around 10.0% below my intrinsic value, which means if you buy Sonoco Products today, you’d be paying a fair price for it. And if you believe that the stock is really worth $66.85, then there’s not much of an upside to gain from mispricing. Furthermore, Sonoco Products’s low beta implies that the stock is less volatile than the wider market.
What kind of growth will Sonoco Products generate?
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 revenue growth of 6.6% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Sonoco Products, at least in the short term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in SON’s future outlook, 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 the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on SON, now may not be the most optimal 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.
If you'd like to know more about Sonoco Products as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Sonoco Products has 2 warning signs and it would be unwise to ignore these.
If you are no longer interested in Sonoco Products, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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.
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