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Keller Group plc (LON:KLR), is not the largest company out there, but it saw a significant share price rise of 24% in the past couple of months on the LSE. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Keller Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.
What's The Opportunity In Keller Group?
Good news, investors! Keller Group is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is £24.86, but it is currently trading at UK£15.38 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Keller Group’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.
Check out our latest analysis for Keller Group
What kind of growth will Keller Group generate?
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 Keller Group, it is expected to deliver a relatively unexciting earnings growth of 1.2%, 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 KLR is currently undervalued, it may be a great time to accumulate more of 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 KLR 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 KLR. 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.