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Is It Too Late To Consider Buying Apogee Enterprises, Inc. (NASDAQ:APOG)?

Simply Wall St

Apogee Enterprises, Inc. (NASDAQ:APOG), which is in the building business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$40.71 at one point, and dropping to the lows of US$31.78. 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 Apogee Enterprises's current trading price of US$33.28 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 Apogee Enterprises’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 Apogee Enterprises

What is Apogee Enterprises worth?

Good news, investors! Apogee Enterprises is still a bargain right now. According to my valuation, the intrinsic value for the stock is $47.34, but it is currently trading at US$33.28 on the share market, meaning that there is still an opportunity to buy now. However, given that Apogee Enterprises’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 does the future of Apogee Enterprises look like?

NasdaqGS:APOG Past and Future Earnings, January 11th 2020

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. Apogee Enterprises’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since APOG is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on APOG for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy APOG. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

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

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.

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. Thank you for reading.