Why Hi-Crush Partners LP (NYSE:HCLP) Could Be A Buy
Hi-Crush Partners LP (NYSE:HCLP), an energy company based in United States, received a lot of attention from a substantial price increase on the NYSE in the over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine Hi-Crush Partners’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Hi-Crush Partners
What is Hi-Crush Partners worth?
Great news for investors – Hi-Crush Partners is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $22.68, but it is currently trading at $12 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Hi-Crush Partners’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from Hi-Crush Partners?
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. Hi-Crush Partners’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since Hi-Crush Partners is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on Hi-Crush Partners for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Hi-Crush Partners. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Hi-Crush Partners. You can find everything you need to know about Hi-Crush Partners in the latest infographic research report. If you are no longer interested in Hi-Crush Partners, 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.
