Let’s talk about the popular VF Corporation (NYSE: VFC). Shares of the company have seen significant price moves in recent months on the NYSE, reaching highs of US$78.01 and falling to lows of US$62.96. Certain movements in the stock price can give investors a better opportunity to get into the stock and potentially buy at a lower price. One question to answer is does VF’s current price of US$63.66 reflect the true value of the large cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at VF’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is the opportunity in VF?
Good news for investors – VF is still trading at a fairly cheap price. According to my assessment, the intrinsic value of the stock is $92.11, but it is currently trading at US$63.66 in the stock market, which means there is still a buying opportunity now. However, since VF’s share is quite volatile (i.e. its price movements are amplified relative to the rest of the market), this could mean that the price may drop, giving us another chance to to buy in the future. This is based on its high beta, which is a good indicator of stock price volatility.
Can we expect VF to grow?
Investors looking for portfolio growth may want to consider a company’s prospects before buying its stock. Although value investors argue that it is intrinsic value relative to price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. VF’s earnings over the next few years are expected to increase by 47%, indicating a very optimistic future. This should lead to more robust cash flow, fueling higher share value.
What does this mean to you :
Are you a shareholder? Given that VFC is currently undervalued, now may be the perfect time to accumulate more of your stock holdings. With a positive outlook on the horizon, it appears that this growth has yet to be fully priced into the stock price. However, other factors such as financial health must also be taken into account, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping tabs on VFC for a while, it might be time to take a leap. Its dynamic future prospects are not yet fully reflected in the current share price, which means it is not too late to buy VFC. But before making investment decisions, consider other factors such as the strength of its balance sheet, in order to make an informed purchase.
If you want to delve deeper into the VF, you should also consider the risks it currently faces. For example, we found 1 warning sign that you should scan your eye to get a better picture of VF
If you are no longer interested in VF, you can use our free platform to view our list of over 50 other stocks with high growth potential.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.