Simply Wall St has no position in any stocks mentioned. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused analysis driven by fundamental data. 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 provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. If you are no longer interested in Encore Wire, you can use our free platform to see our list of over 50 other stocks with a high growth potential. For example, we've found that Encore Wire has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. But keep in mind the risks that come with negative growth prospects in the future. Given its current price multiple, now is a great time to make a decision. What kind of growth will Encore Wire generate?Īre you a potential investor? If you’ve been keeping an eye on WIRE for a while, but hesitant on making the leap, I recommend you research further into the stock. 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. This is because Encore Wire’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. Although, there may be another chance to buy again in the future. The stock’s ratio of 4.34x is currently well-below the industry average of 20.37x, meaning that it is trading at a cheaper price relative to its peers. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. Good news, investors! Encore Wire is still a bargain right now according to my price multiple model, which compares the company's price-to-earnings ratio to the industry average. View our latest analysis for Encore Wire What's The Opportunity In Encore Wire? So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Encore Wire’s outlook and value based on the most recent financial data to see if the opportunity still exists. Although, there is more of an opportunity for mispricing in stocks with low coverage, which can be a good thing. As a US$2.9b market cap stock, it seems odd Encore Wire is not more well-covered by analysts. While Encore Wire Corporation ( NASDAQ:WIRE) 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.
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