Is It Time To Buy Macquarie Infrastructure Corporation (NYSE:MIC)?
Macquarie Infrastructure Corporation (NYSE:MIC), a infrastructure company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $67.4 and falling to the lows of $36.56. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Macquarie Infrastructure’s current trading price of $39.47 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 Macquarie Infrastructure’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Macquarie Infrastructure
Is Macquarie Infrastructure still cheap?
Good news, investors! Macquarie Infrastructure is still a bargain right now. According to my valuation, the intrinsic value for the stock is $97.33, but it is currently trading at US$39.47 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 Macquarie Infrastructure’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.
Can we expect growth from Macquarie Infrastructure?
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. Though in the case of Macquarie Infrastructure, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? Although MIC is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to MIC, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on MIC for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Macquarie Infrastructure. You can find everything you need to know about Macquarie Infrastructure in the latest infographic research report. If you are no longer interested in Macquarie Infrastructure, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
