Saul Centers, Inc. (NYSE:BFS), which is in the reits business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $58.06 and falling to the lows of $49.5. 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 Saul Centers's current trading price of $52.16 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 Saul Centers’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Is Saul Centers still cheap?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.076% above my intrinsic value, which means if you buy Saul Centers today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $52.12, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Saul Centers’s share price may be more stable over time (relative to the market), as indicated by its low beta.
What does the future of Saul Centers 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. Though in the case of Saul Centers, it is expected to deliver a relatively unexciting earnings growth of 2.4%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Saul Centers, at least in the near term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in BFS’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 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 an eye on BFS, 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 diving deeper into 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 Saul Centers. You can find everything you need to know about Saul Centers in the latest infographic research report. If you are no longer interested in Saul Centers, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.