Is It Too Late To Buy The McClatchy Company (MNI)?
The McClatchy Company (AMEX:MNI), a media company based in United States, View our latest analysis for McClatchy
Is MNI still cheap?
Great news for investors – MNI is still trading at a fairly cheap price. My valuation model shows that the stock’s value should be $14.57 but it is currently trading at $7.75 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, MNI’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because MNI’s stock is less volatile than the wider market given its low beta.
What does the future of MNI 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 MNI future expectations. Though in the case of MNI, it is expected to deliver a negative revenue growth of -4.32% next year, 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 MNI is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to MNI, 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 MNI 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 McClatchy. You can find everything you need to know about MNI in the latest infographic research report. If you are no longer interested in McClatchy, 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.
