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Oxford Industries, Inc. (NYSE:OXM), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$87.39 at one point, and dropping to the lows of US$72.62. 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 Oxford Industries' current trading price of US$76.87 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 Oxford Industries’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Oxford Industries
What's The Opportunity In Oxford Industries?
According to our valuation model, Oxford Industries seems to be fairly priced at around 5.47% above our intrinsic value, which means if you buy Oxford Industries today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $72.88, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Oxford Industries’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.
What does the future of Oxford Industries look like?
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 more than double over the next couple of years, the future seems bright for Oxford Industries. 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? OXM’s optimistic future growth appears to have been factored into the current share price, 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 conviction to buy should the price fluctuates below the true value?