CorEnergy Infrastructure Trust, Inc. (NYSE:CORR), which is in the reits business, and is based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on CorEnergy Infrastructure Trust’s outlook and valuation to see if the opportunity still exists.
Is CorEnergy Infrastructure Trust still cheap?
Good news, investors! CorEnergy Infrastructure Trust is still a bargain right now. According to my valuation, the intrinsic value for the stock is $87.69, but it is currently trading at US$46.74 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because CorEnergy Infrastructure Trust’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will CorEnergy Infrastructure Trust generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a negative profit growth of -17% expected next year, near-term growth certainly doesn’t appear to be a driver for a buy decision for CorEnergy Infrastructure Trust. This certainty tips the risk-return scale towards higher risk.
What this means for you:
Are you a shareholder? Although CORR is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to CORR, 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 CORR 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 CorEnergy Infrastructure Trust. You can find everything you need to know about CorEnergy Infrastructure Trust in the latest infographic research report. If you are no longer interested in CorEnergy Infrastructure Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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If you spot an error that warrants correction, please contact the editor at email@example.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.