money Is There Now An Opportunity In Ituran Location and Control Ltd. (NASDAQ:ITRN)?
Ituran Location and Control Ltd. (NASDAQ:ITRN), which is in the communications business, and is based in Israel, saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Ituran Location and Control’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Ituran Location and Control
Is Ituran Location and Control still cheap?
Great news for investors – Ituran Location and Control is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $36.82, 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, Ituran Location and Control’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Ituran Location and Control 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. However, with a relatively muted profit growth of 0.6% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Ituran Location and Control, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since ITRN is currently undervalued, it may be a great time to increase your holdings in the stock. 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 ITRN for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ITRN. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Ituran Location and Control. You can find everything you need to know about Ituran Location and Control in the latest infographic research report. If you are no longer interested in Ituran Location and Control, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
