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While Concrete Pumping Holdings, Inc. (NASDAQ:BBCP) might not have the largest market cap around , it saw a decent share price growth of 15% on the NASDAQCM over the last few months. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on Concrete Pumping Holdings’s outlook and valuation to see if the opportunity still exists.
Is Concrete Pumping Holdings Still Cheap?
Concrete Pumping Holdings appears to be overvalued by 33% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$5.68 on the market compared to our intrinsic value of $4.28. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Since Concrete Pumping Holdings’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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.
Check out our latest analysis for Concrete Pumping Holdings
Can we expect growth from Concrete Pumping Holdings?
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. With profit expected to grow by 74% over the next couple of years, the future seems bright for Concrete Pumping Holdings. 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? BBCP’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe BBCP should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.