What Is Landstar System, Inc.'s (NASDAQ:LSTR) Share Price Doing?
While Landstar System, Inc. (NASDAQ:LSTR) might not be the most widely known stock at the moment, it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. 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 Landstar System’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for Landstar System
What is Landstar System worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.9% below my intrinsic value, which means if you buy Landstar System today, you’d be paying a fair price for it. And if you believe that the stock is really worth $182.23, then there’s not much of an upside to gain from mispricing. Furthermore, Landstar System’s low beta implies that the stock is less volatile than the wider market.
What does the future of Landstar System look like?
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. With profit expected to grow by 29% over the next couple of years, the future seems bright for Landstar System. 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? LSTR’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 track record of its management team. 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 LSTR, now may not be the most optimal 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
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 2 warning signs for Landstar System (1 makes us a bit uncomfortable) you should be familiar with.
If you are no longer interested in Landstar System, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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. 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.
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