Is There Now An Opportunity In MYR Group Inc. (NASDAQ:MYRG)?
Simply Wall St · 01/29 10:51

MYR Group Inc. (NASDAQ:MYRG), might not be a large cap stock, but it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. The company is inching closer to its yearly highs following the recent share price climb. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine MYR Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for MYR Group

What Is MYR Group Worth?

Great news for investors – MYR Group is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $214.25, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, MYR Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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 kind of growth will MYR Group generate?

earnings-and-revenue-growth
NasdaqGS:MYRG Earnings and Revenue Growth January 29th 2024

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 36% over the next couple of years, the future seems bright for MYR Group. 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 MYRG is currently undervalued, it may be a great time to accumulate more of 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MYRG for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MYRG. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in MYR Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.