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Lakeland Bancorp, Inc. (NASDAQ:LBAI), 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 $17.1 and falling to the lows of $14.88. 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 Lakeland Bancorp's current trading price of $16.18 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 Lakeland Bancorp’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Is Lakeland Bancorp still cheap?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 16% below my intrinsic value, which means if you buy Lakeland Bancorp today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $19.28, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Lakeland Bancorp has a low beta, which suggests its share price is less volatile than the wider market.
Can we expect growth from Lakeland Bancorp?
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. Lakeland Bancorp’s earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? It seems like the market has already priced in LBAI’s positive outlook, 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 conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on LBAI, 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 Lakeland Bancorp. You can find everything you need to know about Lakeland Bancorp in the latest infographic research report. If you are no longer interested in Lakeland Bancorp, 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 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.