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Is It Too Late To Consider Buying CatchMark Timber Trust, Inc. (NYSE:CTT)?

Simply Wall St

CatchMark Timber Trust, Inc. (NYSE:CTT), which is in the reits business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $10.72 at one point, and dropping to the lows of $9.58. 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 CatchMark Timber Trust's current trading price of $10.25 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 CatchMark Timber Trust’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 CatchMark Timber Trust

Is CatchMark Timber Trust still cheap?

Great news for investors – CatchMark Timber Trust is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $13.12, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that CatchMark Timber Trust’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.

Can we expect growth from CatchMark Timber Trust?

NYSE:CTT Past and Future Earnings, September 11th 2019

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. In the upcoming year, CatchMark Timber Trust’s earnings are expected to increase by 68%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since CTT 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 capital structure to consider, which could explain the current undervaluation.

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

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on CatchMark Timber Trust. You can find everything you need to know about CatchMark Timber Trust in the latest infographic research report. If you are no longer interested in CatchMark Timber Trust, 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.