Yahoo Finance What Does Chicago Bridge & Iron Company NV.’s (NYSE:CBI) Share Price Indicate?
Chicago Bridge & Iron Company NV. (NYSE:CBI), a construction company based in Netherlands, received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Chicago Bridge & Iron’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Chicago Bridge & Iron
Is Chicago Bridge & Iron still cheap?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 9.70% below my intrinsic value, which means if you buy Chicago Bridge & Iron today, you’d be paying a fair price for it. And if you believe that the stock is really worth $18.15, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Chicago Bridge & Iron’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Chicago Bridge & Iron?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a relatively muted revenue growth of 7.33% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Chicago Bridge & Iron, at least in the short term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in CBI’s future 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 CBI, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Chicago Bridge & Iron. You can find everything you need to know about Chicago Bridge & Iron in the latest infographic research report. If you are no longer interested in Chicago Bridge & Iron, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
