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At US$44.13, Is It Time To Put Werner Enterprises, Inc. (NASDAQ:WERN) On Your Watch List?

Werner Enterprises, Inc. (NASDAQ:WERN), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Werner Enterprises’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Werner Enterprises

What is Werner Enterprises worth?

According to my valuation model, Werner Enterprises seems to be fairly priced at around 13.29% above my intrinsic value, which means if you buy Werner Enterprises today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $38.95, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Werner Enterprises has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Werner Enterprises generate?

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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. Werner Enterprises’s earnings over the next few years are expected to increase by 25%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has already priced in WERN’s positive outlook, 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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on WERN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which 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.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example - Werner Enterprises has 1 warning sign we think you should be aware of.

If you are no longer interested in Werner 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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