While Werner Enterprises, Inc. (NASDAQ:WERN) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$44.84 and falling to the lows of US$37.16. 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 Werner Enterprises' current trading price of US$39.24 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Werner Enterprises'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 Werner Enterprises

What's The Opportunity In Werner Enterprises?

The stock seems fairly valued at the moment according to my valuation model. It's trading around 12.50% above my intrinsic value, which means if you buy Werner Enterprises today, you'd be paying a relatively fair price for it. And if you believe the company's true value is $34.88, then there isn't really any room for the share price grow beyond what it's currently trading. In addition to this, Werner Enterprises has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Werner Enterprises?

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. However, with a negative profit growth of -12% expected over the next couple of years, near-term growth certainly doesn't appear to be a driver for a buy decision for Werner Enterprises. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Currently, WERN appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you've been keeping tabs on WERN for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there's less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven't considered today, which can help crystalize your views on WERN should the price fluctuate below its true value.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. When we did our research, we found 2 warning signs for Werner Enterprises (1 can't be ignored!) that we believe deserve your full attention.

If you are no longer interested in Werner Enterprises, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.