Forward Air Corporation (NASDAQ:FWRD), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let's examine Forward Air's valuation and outlook in more detail to determine if there's still a bargain opportunity.
What's The Opportunity In Forward Air?
Great news for investors – Forward Air is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $34.67, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Forward Air's share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range.
What kind of growth will Forward Air 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. 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. In the upcoming year, Forward Air's earnings are expected to increase by 24%, 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? Since FWRD is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you've been keeping an eye on FWRD 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 FWRD. 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.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For instance, we've identified 3 warning signs for Forward Air (1 makes us a bit uncomfortable) you should be familiar with.
If you are no longer interested in Forward Air, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Forward Air Corporation(納斯達克股票代碼:FWRD)並不是目前最大的公司,但由於過去幾個月納斯達克股票價格的大幅上漲,它受到了廣泛關注。儘管仍未達到年度峯值,但最近股價的上漲推動該公司朝着正確的方向前進。作爲一隻受分析師高度關注的股票,你可以假設該公司前景的任何最近變化都已計入該股。但是,該股票還能以相對便宜的價格交易嗎?讓我們更詳細地研究Forward Air的估值和前景,以確定是否還有討價還價的機會。