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Is It Too Late To Consider Buying CVB Financial Corp. (NASDAQ:CVBF)?

Simply Wall St

CVB Financial Corp. (NASDAQ:CVBF), 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 US$22.07 and falling to the lows of US$20.03. 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 CVB Financial's current trading price of US$21.57 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at CVB Financial’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for CVB Financial

Is CVB Financial still cheap?

Good news, investors! CVB Financial is still a bargain right now. According to my valuation, the intrinsic value for the stock is $27.57, but it is currently trading at US$21.57 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, CVB Financial’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of CVB Financial look like?

NasdaqGS:CVBF Past and Future Earnings, December 31st 2019

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. Though in the case of CVB Financial, it is expected to deliver a negative earnings growth of -0.3%, 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? Although CVBF is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to CVBF, 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 CVBF 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 CVB Financial. You can find everything you need to know about CVB Financial in the latest infographic research report. If you are no longer interested in CVB Financial, 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.