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Atkore International Group Inc. (NYSE:ATKR), which is in the electrical business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NYSE. 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, what if the stock is still a bargain? Let’s take a look at Atkore International Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Atkore International Group

What’s the opportunity in Atkore International Group?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.72% above my intrinsic value, which means if you buy Atkore International Group today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $23.52, then there isn’t really any room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Atkore International Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of Atkore International Group 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. Though in the case of Atkore International Group, it is expected to deliver a relatively unexciting earnings growth of 0.1%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Atkore International Group, at least in the near term.

What this means for you:

Are you a shareholder? ATKR’s 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 an eye on ATKR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Atkore International Group. You can find everything you need to know about Atkore International Group in the latest infographic research report. If you are no longer interested in Atkore International Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.