Life Time Group Holdings, Inc. (NYSE:LTH), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NYSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. 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, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Life Time Group Holdings's outlook and valuation to see if the opportunity still exists.
Is Life Time Group Holdings Still Cheap?
Life Time Group Holdings is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 49.68x is currently well-above the industry average of 19.91x, meaning that it is trading at a more expensive price relative to its peers. But, is there another opportunity to buy low in the future? Since Life Time Group 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.
What does the future of Life Time Group Holdings look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to more than double over the next couple of years, the future seems bright for Life Time Group 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? It seems like the market has well and truly priced in LTH's positive outlook, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe LTH should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you've been keeping an eye on LTH for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for LTH, which means it's worth diving deeper into other factors in order to take advantage of the next price drop.
With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, Life Time Group Holdings has 2 warning signs (and 1 which is a bit concerning) we think you should know about.
If you are no longer interested in Life Time Group Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Life Time Group Holdings, Inc.(NYSE:LTH)は、最大の企業ではありませんが、最近のNYSEでの価格上昇により注目を集めています。株価の最近の急騰により、企業は正しい方向に動いていますが、年間ピークにはまだ及びません。アナリストによる高いカバレッジのあるミッドキャップ株であるため、企業の見通しの最近の変化が株価にすでに反映されていると仮定できます。しかし、株式はまだ比較的安い価格で取引されている可能性がありますか?今日は、Life Time Group Holdingsの見通しと評価に関する最新のデータを分析し、それがまだ存在するかどうかを確認します。
Life Time Group Holdingsはまだ安いのでしょうか?
Life Time Group Holdingsは、私たちの価格倍率モデルに基づくと現在高価です。私たちは、企業の株価収益率を業界平均と比較して見ています。キャッシュフローを予測するための十分な可視性がないため、この場合に株価収益率を使用しました。株式の倍率が49.68倍であり、業界平均の19.91倍よりもはるかに高いため、競合他社に比べてより高い価格で取引されていることを示しています。しかし、将来的に低い値で買う別の機会があるのでしょうか?Life Time Group Holdingsの株価が非常に不安定であるため、将来的に下落する(またはさらに上昇する)可能性があり、再投資する機会があります。これは、市場全体と比較して株式がどれだけ動くかを示す良い指標である、高いベータに基づいています。
Life Time Group Holdingsの将来はどうなるのでしょうか?
ポートフォリオの成長を求める投資家は、株式を購入する前に企業の見通しを考慮することが求められます。価値投資家は、価格に対する本質的な価値が最も重要であると主張するかもしれませんが、より魅力的な投資テーゼは、安い価格で高い成長ポテンシャルを持つことでしょう。未来の数年間で利益が2倍以上になることが期待されており、Life Time Group Holdingsの将来は明るいようです。低いキャッシュフローが見込まれているため、株式の評価も高くなるでしょう。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。