At US$043.08, Is It Time To Buy American Campus Communities Inc (NYSE:ACC)?
American Campus Communities Inc (NYSE:ACC), a reits company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at American Campus Communities’s outlook and value based on the most recent financial data to see if the opportunity still exists. View out our latest analysis for American Campus Communities
Is American Campus Communities still cheap?
According to my valuation model, American Campus Communities seems to be fairly priced at around 14.07% below my intrinsic value, which means if you buy American Campus Communities today, you’d be paying a fair price for it. And if you believe that the stock is really worth $50.13, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, American Campus Communities’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.
What kind of growth will American Campus Communities generate?
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. 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, American Campus Communities’s earnings are expected to increase by 47.87%, 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? ACC’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on ACC, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on American Campus Communities. You can find everything you need to know about American Campus Communities in the latest infographic research report. If you are no longer interested in American Campus Communities, 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.
