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At US$46.83, Is Casella Waste Systems, Inc. (NASDAQ:CWST) Worth Looking At Closely?

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Simply Wall St
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Casella Waste Systems, Inc. (NASDAQ:CWST), which is in the commercial services business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. 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. But what if there is still an opportunity to buy? Let’s examine Casella Waste Systems’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Casella Waste Systems

Is Casella Waste Systems still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 6.58% above my intrinsic value, which means if you buy Casella Waste Systems today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $43.94, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Casella Waste Systems’s low beta implies that the stock is less volatile than the wider market.

What does the future of Casella Waste Systems look like?

NasdaqGS:CWST Past and Future Earnings, January 5th 2020
NasdaqGS:CWST Past and Future Earnings, January 5th 2020

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. With profit expected to more than double over the next couple of years, the future seems bright for Casella Waste Systems. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? CWST’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on CWST, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect 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 Casella Waste Systems. You can find everything you need to know about Casella Waste Systems in the latest infographic research report. If you are no longer interested in Casella Waste Systems, 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.