TTM Technologies, Inc. (NASDAQ:TTMI), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$15.21 and falling to the lows of US$13.70. 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 TTM Technologies' current trading price of US$13.72 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 TTM Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's the opportunity in TTM Technologies?
According to my valuation model, TTM Technologies seems to be fairly priced at around 3.28% above my intrinsic value, which means if you buy TTM Technologies today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $13.28, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since TTM Technologies’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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 TTM Technologies look like?NasdaqGS:TTMI Earnings and Revenue Growth July 23rd 2021
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 revenue growth of 4.2% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for TTM Technologies.
What this means for you:
Are you a shareholder? It seems like the market has already priced in TTMI’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. 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 tabs on TTMI, now may not be the most advantageous 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.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've found that TTM Technologies has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.
If you are no longer interested in TTM Technologies, 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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