While Cyxtera Technologies, Inc. (NASDAQ:CYXT) might not be the most widely known stock at the moment, it led the NASDAQGS 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 to have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Cyxtera Technologies’ outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Cyxtera Technologies
What’s The Opportunity In Cyxtera Technologies?
Great news for investors – Cyxtera Technologies is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $4.18, but it is currently trading at US$3.25 on the share market, meaning that there is still an opportunity to buy now. Cyxtera Technologies’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.
What kind of growth will Cyxtera Technologies 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 matters most, a more compelling investment theses would be high growth potential at a cheap price. With profits expected to grow by a double-digit 17% over the next couple of years, the outlook is positive for Cyxtera Technologies. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since CYXT is currently undervalued, it could 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on CYXT 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 CYXT. 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 buy.
So if you’d like to dive deeper into this stock, it’s crucial to consider any risks it’s facing. While conducting our analysis, we found that Cyxtera Technologies has 3 warning signs and it would be unwise to ignore them.
If you are no longer interested in Cyxtera Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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