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Is Now The Time To Look At Buying Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI)?

Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI), which is in the trade distributors business, and is based in United States, received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Fortress Transportation and Infrastructure Investors’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Fortress Transportation and Infrastructure Investors

What is Fortress Transportation and Infrastructure Investors worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 8.76% above my intrinsic value, which means if you buy Fortress Transportation and Infrastructure Investors today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $19.68, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Fortress Transportation and Infrastructure Investors’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.

Can we expect growth from Fortress Transportation and Infrastructure Investors?

NYSE:FTAI Past and Future Earnings, February 20th 2020
NYSE:FTAI Past and Future Earnings, February 20th 2020

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. With profit expected to more than double over the next couple of years, the future seems bright for Fortress Transportation and Infrastructure Investors. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? FTAI’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on FTAI, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining 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 truly matters – the fundamentals – before you make a decision on Fortress Transportation and Infrastructure Investors. You can find everything you need to know about Fortress Transportation and Infrastructure Investors in the latest infographic research report. If you are no longer interested in Fortress Transportation and Infrastructure Investors, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.