While ASGN Incorporated (NYSE:ASGN) 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$105 and falling to the lows of US$92.15. 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 ASGN's current trading price of US$94.07 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at ASGN's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What Is ASGN Worth?
The stock seems fairly valued at the moment according to our valuation model. It's trading around 12% below our intrinsic value, which means if you buy ASGN today, you'd be paying a fair price for it. And if you believe that the stock is really worth $106.53, then there isn't much room for the share price grow beyond what it's currently trading. So, is there another chance to buy low in the future? Given that ASGN'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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will ASGN generate?
NYSE:ASGN Earnings and Revenue Growth June 4th 2024
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 9.0% expected over the next couple of years, growth doesn't seem like a key driver for a buy decision for ASGN, at least in the short term.
What This Means For You
Are you a shareholder? ASGN's 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 confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you've been keeping an eye on ASGN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example - ASGN has 2 warning signs we think you should be aware of.
If you are no longer interested in ASGN, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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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.