Why Ituran Location and Control Ltd. (NASDAQ:ITRN) Could Be Worth Watching
While Ituran Location and Control Ltd. (NASDAQ:ITRN) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$17.50 and falling to the lows of US$13.07. 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 Ituran Location and Control's current trading price of US$13.40 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 Ituran Location and Control’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Ituran Location and Control
Is Ituran Location and Control still cheap?
Good news, investors! Ituran Location and Control is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $21.21, but it is currently trading at US$13.40 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Ituran Location and Control’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 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. 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. Though in the case of Ituran Location and Control, it is expected to deliver a relatively unexciting top-line growth of 2.8% over the next year, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near 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 financial health 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.
If you want to dive deeper into Ituran Location and Control, you'd also look into what risks it is currently facing. Our analysis shows 2 warning signs for Ituran Location and Control (1 is concerning!) and we strongly recommend you look at them before investing.
If you are no longer interested in Ituran Location and Control, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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. 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.
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