U.S. markets open in 7 hours 25 minutes
  • S&P Futures

    3,222.50
    -8.75 (-0.27%)
     
  • Dow Futures

    26,620.00
    -65.00 (-0.24%)
     
  • Nasdaq Futures

    10,778.25
    -50.75 (-0.47%)
     
  • Russell 2000 Futures

    1,448.10
    +1.40 (+0.10%)
     
  • Crude Oil

    39.68
    -0.25 (-0.63%)
     
  • Gold

    1,854.90
    -13.50 (-0.72%)
     
  • Silver

    22.04
    -1.06 (-4.61%)
     
  • EUR/USD

    1.1665
    +0.0003 (+0.02%)
     
  • 10-Yr Bond

    0.6760
    0.0000 (0.00%)
     
  • Vix

    28.58
    +1.72 (+6.40%)
     
  • GBP/USD

    1.2713
    -0.0012 (-0.10%)
     
  • USD/JPY

    105.3070
    -0.0250 (-0.02%)
     
  • BTC-USD

    10,303.29
    +53.82 (+0.53%)
     
  • CMC Crypto 200

    217.08
    +3.11 (+1.45%)
     
  • FTSE 100

    5,899.26
    +69.80 (+1.20%)
     
  • Nikkei 225

    23,071.40
    -275.09 (-1.18%)
     

Should You Think About Buying Nielsen Holdings plc (NYSE:NLSN) Now?

Simply Wall St

Nielsen Holdings plc (NYSE:NLSN), might not be a large cap stock, but it led the NYSE gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Nielsen Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Nielsen Holdings

What's the opportunity in Nielsen Holdings?

Great news for investors – Nielsen Holdings is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $20.60, but it is currently trading at US$16.29 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Nielsen Holdings’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 Nielsen Holdings look like?

earnings-and-revenue-growth
earnings-and-revenue-growth

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 revenue growth of 2.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Nielsen Holdings, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since NLSN 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on NLSN for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NLSN. 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Nielsen Holdings.

If you are no longer interested in Nielsen Holdings, 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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.