PQ Group Holdings Inc. (NYSE:PQG), which is in the chemicals business, and is based in United States, led the NYSE gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine PQ Group Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for PQ Group Holdings
Great news for investors – PQ Group Holdings is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $17.26, but it is currently trading at US$11.08 on the share market, meaning that there is still an opportunity to buy now. PQ Group Holdings’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
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. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 88% over the next couple of years, the future seems bright for PQ Group Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder? Since PQG is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on PQG for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PQG. 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 investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on PQ Group Holdings. You can find everything you need to know about PQ Group Holdings in the latest infographic research report. If you are no longer interested in PQ Group Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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