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Is It Time To Consider Buying TrustCo Bank Corp NY (NASDAQ:TRST)?

Simply Wall St

TrustCo Bank Corp NY (NASDAQ:TRST), operating in the financial services industry based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $8.2 and falling to the lows of $7.38. 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 TrustCo Bank Corp NY's current trading price of $7.72 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 TrustCo Bank Corp NY’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 TrustCo Bank Corp NY

What's the opportunity in TrustCo Bank Corp NY?

According to my valuation model, the stock is currently overvalued by about 30.1%, trading at US$7.72 compared to my intrinsic value of $5.93. This means that the opportunity to buy TrustCo Bank Corp NY at a good price has disappeared! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that TrustCo Bank Corp NY’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will TrustCo Bank Corp NY generate?

NasdaqGS:TRST Past and Future Earnings, August 22nd 2019

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. 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 TrustCo Bank Corp NY, it is expected to deliver a negative earnings growth of -1.3%, 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? If you believe TRST is currently trading above its value, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the uncertainty from negative growth in the future, this could be the right time to reduce your total portfolio risk. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on TRST for some time, now may not be the best time to enter into the stock. Its price has risen beyond its true value, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on TrustCo Bank Corp NY. You can find everything you need to know about TrustCo Bank Corp NY in the latest infographic research report. If you are no longer interested in TrustCo Bank Corp NY, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.