Gibraltar Industries, Inc. (NASDAQ:ROCK), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. While good news for shareholders, the company has traded much higher in the past year. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Today we will analyse the most recent data on Gibraltar Industries’s outlook and valuation to see if the opportunity still exists.
Is Gibraltar Industries Still Cheap?
Good news, investors! Gibraltar Industries is still a bargain right now. According to our valuation, the intrinsic value for the stock is $80.58, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Gibraltar Industries’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
View our latest analysis for Gibraltar Industries
What kind of growth will Gibraltar Industries 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. 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 Gibraltar Industries, it is expected to deliver a relatively unexciting earnings growth of 7.0%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Gibraltar Industries, at least in the near term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since ROCK is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 ROCK for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ROCK. 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.
If you want to dive deeper into Gibraltar Industries, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Gibraltar Industries and we think they deserve your attention.
If you are no longer interested in Gibraltar Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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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.