What Is Apogee Enterprises, Inc.'s (NASDAQ:APOG) Share Price Doing?
Apogee Enterprises, Inc. (NASDAQ:APOG), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. 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 take a look at Apogee Enterprises’s outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for Apogee Enterprises
Is Apogee Enterprises still cheap?
Good news, investors! Apogee Enterprises 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. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Apogee Enterprises’s ratio of 11.74x is below its peer average of 23.5x, which indicates the stock is trading at a lower price compared to the Building industry. However, given that Apogee Enterprises’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.
What kind of growth will Apogee Enterprises 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. Though in the case of Apogee Enterprises, it is expected to deliver a relatively unexciting earnings growth of 1.8%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Apogee Enterprises, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since APOG is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current price multiple.
Are you a potential investor? If you’ve been keeping an eye on APOG for a while, now might be the time to make a leap. Its future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy APOG. 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 investment decision.
If you want to dive deeper into Apogee Enterprises, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 2 warning signs with Apogee Enterprises, and understanding these should be part of your investment process.
If you are no longer interested in Apogee Enterprises, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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. 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.
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