Buy low, sell high is a timeless strategy that might just apply to Worthington Industries as we look toward January. Despite recent challenges, including a dip to a 52-week low of 37.88, the stock's current valuation could present a strategic entry point for investors. With a PEG ratio of 0.35, the company appears undervalued relative to its growth potential, suggesting room for appreciation. The analyst consensus remains at a hold, but with an estimated target price of 65, there's a potential upside that could reward patient investors. While the short ratio of 6.6 indicates some skepticism, the company's solid footing in the metal fabrication industry and a reasonable payout ratio of 23.4% provide a cushion for those willing to weather short-term volatility. As the fiscal year wraps up in May, keeping an eye on earnings and market conditions could offer further insights into the stock's trajectory. Currently, Worthington Industries' Free Cash Flow Per Share remains steady compared to last year. By December 17, 2024, Days of Inventory on Hand is expected to increase to 67.79, while the Enterprise Value might slightly decrease to just over $624 million. This update aims to provide retail investors with our insights on Worthington Industries for January. We'll offer a forecast of the company's value to help guide investment decisions.
Worthington Industries has a beta of 2.03, indicating its stock is more volatile than the market. When the market rises, Worthington is likely to see even greater gains. Conversely, if the market declines, the stock may experience sharper losses. Beta measures how a stock moves in relation to the market, offering insight into its volatility and risk. A high beta like Worthington's suggests significant price swings, which can mean higher potential returns but also increased risk. If the stock closely follows market trends, it doesn't significantly alter the risk or return profile of a portfolio.
Main Takeaways
Worthington Industries, trading under the ticker WOR, is currently navigating a challenging market environment, with its stock price hovering around 38.2, significantly below its 52-week high of 69.18. This downturn, reflected in a recent price percent change of -1.24%, might initially seem concerning. However, this decline could present a strategic entry point for investors eyeing a potential rebound. With an EPS estimate of 3.53 for the next year, the company shows promise for future earnings growth, suggesting that the current dip could be an opportune moment for savvy investors to consider adding WOR to their portfolios.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Worthington Industries. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
How important is Worthington Industries's Liquidity
Worthington Industries financial leverage refers to using borrowed capital as a funding source to finance Worthington Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Worthington Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Worthington Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Worthington Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Worthington Industries's total debt and its cash.
How does Worthington utilize its cash?
At this time, Worthington Industries' Depreciation is relatively stable compared to the past year. . To perform a cash flow analysis of Worthington Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Worthington Industries is receiving and how much cash it distributes out in a given period. The Worthington Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Worthington Industries Gross Profit
Worthington Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Worthington Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Worthington Industries Gross Profit growth over the last 10 years. Please check Worthington Industries' gross profit and other fundamental indicators for more details.
A Deeper look at Worthington
The latest Worthington Industries price fall may raise some interest from retail investors as it is trading at a share price of 38.20 on 421,025 in trading volume. The company executives were unable to exploit market volatilities in November. However, diversifying your overall positions with Worthington Industries can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.43.The current volatility is consistent with the ongoing market swings in November 2024 as well as with Worthington Industries unsystematic, company-specific events.
Shares Breakdown
Warren Buffett once said, "Be fearful when others are greedy and greedy when others are fearful." Worthington Industries (NYSE: WOR) might be testing investors' resolve with its recent price action, as the stock hovers near its 52-week low of $37.88. Despite a challenging period marked by a price action indicator of -0.3, the company's robust cash flow from operations at $289.98 million and a low PEG ratio of 0.35 suggest underlying strength. With a payout ratio of 0.234, the company maintains a conservative approach to dividends, which could appeal to long-term investors. As the market anticipates potential volatility, the current price levels may offer a strategic entry point for those willing to embrace a bit of risk for potential future gains..
Our Worthington analysis connotes possible reversion in January
Worthington Industries has recently seen its maximum drawdown decrease to 14.31%, which might signal a change in momentum. This improvement suggests the stock could be stabilizing, potentially setting the stage for a rebound as January approaches. Investors may want to reconsider their positions, as the current trend hints at a possible recovery in Worthington's stock performance in the new year. The stock shows low volatility, with a skewness of 0.86 and kurtosis of 5.55. Understanding these volatility metrics can help investors better time their market moves.During bear markets, increased volatility can affect Worthington's stock price, often prompting investors to adjust their portfolios by diversifying their holdings as prices drop.Considering the current landscape for Worthington Industries, it seems the stock is navigating through a period of uncertainty. With an analyst consensus rating of "Hold" and a valuation market value of 38.2, investors might want to approach with caution. The analyst target price estimated value of 65 suggests potential upside, but the presence of two "Hold" ratings and one "Sell" indicates mixed sentiment. As the fiscal year wraps up in May, keeping an eye on how the company adapts to market challenges will be crucial. Investors should weigh these factors carefully and decide if Worthington aligns with their risk tolerance and investment goals..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
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