Is There Now An Opportunity In Echo Global Logistics, Inc. (NASDAQ:ECHO)?
Echo Global Logistics, Inc. (NASDAQ:ECHO), which is in the logistics business, and is based in United States, saw significant share price movement during recent months on the NasdaqGS, rising to highs of $36.65 and falling to the lows of $21.54. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Echo Global Logistics’s current trading price of $21.54 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Echo Global Logistics’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Echo Global Logistics
What is Echo Global Logistics worth?
Good news, investors! Echo Global Logistics is still a bargain right now. According to my valuation, the intrinsic value for the stock is $33.67, but it is currently trading at US$21.54 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Echo Global Logistics’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What kind of growth will Echo Global Logistics generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 a double-digit 13% over the next couple of years, the outlook is positive for Echo Global Logistics. 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? Since ECHO 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 ECHO for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ECHO. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, 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 Echo Global Logistics. You can find everything you need to know about Echo Global Logistics in the latest infographic research report. If you are no longer interested in Echo Global Logistics, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
