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While Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$12.88 and falling to the lows of US$10.29. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Loma Negra Compañía Industrial Argentina Sociedad Anónima's current trading price of US$11.04 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Loma Negra Compañía Industrial Argentina Sociedad Anónima’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's The Opportunity In Loma Negra Compañía Industrial Argentina Sociedad Anónima?
Good news, investors! Loma Negra Compañía Industrial Argentina Sociedad Anónima is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Loma Negra Compañía Industrial Argentina Sociedad Anónima’s ratio of 8.99x is below its peer average of 17.14x, which indicates the stock is trading at a lower price compared to the Basic Materials industry. However, given that Loma Negra Compañía Industrial Argentina Sociedad Anónima’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
View our latest analysis for Loma Negra Compañía Industrial Argentina Sociedad Anónima
What kind of growth will Loma Negra Compañía Industrial Argentina Sociedad Anónima generate?
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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected next year, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Loma Negra Compañía Industrial Argentina Sociedad Anónima, at least in the near future.