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Is It Time To Buy Select Bancorp Inc (NASDAQ:SLCT)?

Andrew Edmonds

Select Bancorp Inc (NASDAQ:SLCT), operating in the financial services industry based in United States, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of $11.55 to $12.58. However, is this the true valuation level of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Select Bancorp’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 Select Bancorp

Is Select Bancorp still cheap?

The stock seems fairly valued at the moment according to my relative valuation model. I’ve used the price-to-equity ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 21.36x is currently trading slightly above its industry peers’ ratio of 16.67x, which means if you buy Select Bancorp today, you’d be paying a relatively fair price for it. And if you believe Select Bancorp should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Select Bancorp’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.

What does the future of Select Bancorp look like?

NasdaqGM:SLCT Future Profit Dec 29th 17
NasdaqGM:SLCT Future Profit Dec 29th 17

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. With profit expected to grow by 55.39% over the next year, the near-term future seems bright for Select Bancorp. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Select Bancorp’s optimistic 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 track record of its management team. Have these factors changed since the last time you looked at Select Bancorp? 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 an eye on Select Bancorp, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for Select Bancorp, which 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 Select Bancorp. You can find everything you need to know about Select Bancorp in the latest infographic research report. If you are no longer interested in Select Bancorp, 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.