American Campus Communities Inc (NYSE:ACC), a real estate company based in United States, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of $45.67 to $49. However, is this the true valuation level of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at ACC’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 American Campus Communities
What is ACC worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 9% below my intrinsic value, which means if you buy ACC today, you’d be paying a reasonable price for it. And if you believe ACC’s true value is $52.08, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, it seems like ACC’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because ACC’s stock is less volatile than the wider market given its low beta.
Can we expect growth from ACC?
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 ACC future expectations. With profit expected to grow by 64.78% over the next year, the near-term future seems bright for ACC. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? It seems like the market has already priced in ACC’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 track record of its management team. Have these factors changed since the last time you looked at ACC? 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 an eye on ACC, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for ACC, 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 ACC 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.