Is it too late to consider buying Woodward, Inc. (NASDAQ: WWD)?

Woodward, Inc. (NASDAQ: WWD), which operates in the machinery sector and is based in the United States, has received a lot of attention due to significant price movement on the NasdaqGS over the past few months , increasing to $84.27 at one point, and falling to the low of $68.95. Certain stock price movements can give investors a better opportunity to enter the stock and potentially buy at a lower price. One question that needs to be answered is whether Woodward’s current trading price of $72.65 reflects the true value of the mid-cap company? Or is it currently undervalued, giving us an opportunity to buy? Let’s take a look at Woodward’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 Woodward

What is Woodward worth?

According to my valuation model, Woodward appears to be fairly valued, about 0.51% above my intrinsic value, meaning that if you buy Woodward today, you will be paying a relatively fair price. And if you believe the company is truly worth $72.28, there will be little downside when the price drops to its true value. Is there another opportunity to buy low in the future? Given that Woodward’s stock price is quite volatile, we could potentially see it go down (or up) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator of how the stock will perform relative to the rest of the market.

Can we expect growth from Woodward?

Future outlook is an important aspect when considering buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors argue that it’s the intrinsic value relative to price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. With profits expected to more than double over the next two years, the future looks bright for Woodward. It looks like higher cash flow is on the cards for the stock, which should translate into a higher share valuation.

What this means for you:

Are you a shareholder? WWD’s optimistic growth seems to have been factored into the current stock price, which is trading around its fair value. However, there are also other important factors that we haven’t considered today, such as the track record of its management team. Have these factors changed since you last looked at the stock? Would you have the confidence to invest in the company if the price falls below its fair value?

Are you a potential investor? If you’ve been following WWD closely, now may not be the most advantageous time to buy, given that the stock is trading around its fair value. However, the company’s positive outlook is encouraging, which means it’s worth looking more closely at other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what really matters – the fundamentals – before making a decision on Woodward. You can find everything you need to know about Woodward in the latest infographic research report. If you’re no longer interested in Woodward, you can use our free platform to view my list of over 50 other stocks with high growth potential.

To help readers see beyond the short-term volatility of the financial market, we would like to offer you a long-term focused research analysis, based purely on fundamental data. Please note that our analysis does not take into account the latest announcements of price-sensitive companies.

The author is an independent contributor and, at the time of publication, had no position in any stocks mentioned. For errors that require correction, please contact the editor at [email protected].