Arcosa Intrinsic Value – ARCOSA Soars to New Heights, Experts Weigh in on Whether it’s Still a Smart Investment

November 15, 2024

☀️Trending News

Introduction: ARCOSA ($NYSE:ACA), Inc. is an infrastructure and construction materials company that has recently made headlines with its stock soaring to a new 52-week high on Monday. This achievement has caught the attention of investors and experts alike, causing many to question whether ARCOSA is still a smart investment. The company provides a wide range of products and services, including equipment and components for the transportation, energy, and construction sectors. This can be attributed to the company’s strong financials, including a steady increase in revenue and earnings growth. Additionally, the infrastructure and construction industries are expected to see growth in the coming years, which bodes well for ARCOSA. The company’s diverse portfolio also puts it in a position to capitalize on this expected growth in various sectors. On the other hand, some experts argue that the recent surge in ARCOSA’s stock price may be overvalued and could lead to a correction in the near future. Expert opinions: According to analysts at Zacks Investment Research, ARCOSA’s recent success can be attributed to its strong fundamentals and proactive approach towards managing its operations. They also believe that the company’s diverse portfolio and focus on innovation make it a promising long-term investment.

However, experts at MarketBeat have a more cautious view, citing ARCOSA’s current high stock price as a cause for concern. They suggest that investors should wait for a possible pullback before considering investing in the company. Conclusion: In conclusion, ARCOSA has undoubtedly shown impressive performance in the stock market, and its diverse portfolio and strong fundamentals make it an attractive option for investment. However, the current economic uncertainty and the possibility of a correction in stock price should also be considered by potential investors. Ultimately, conducting thorough research and consulting with financial experts is crucial in making an informed decision regarding ARCOSA’s potential as an investment.

Price History

ARCOSA, a leading provider of infrastructure-related products and services, has been making waves in the stock market. On Tuesday, the company’s stock opened at $106.0 and closed at $103.58, down by 2.5% from its previous closing price of 106.24. Some experts believe that this slight decline in stock price is simply a short-term fluctuation and should not cause concern for long-term investors. They point to ARCOSA’s strong financial performance and stable position in the market as indicators of its potential for continued growth. Others, however, caution that the current economic climate, which has been heavily impacted by the ongoing pandemic, could have a negative effect on ARCOSA’s future earnings. They advise investors to closely monitor any developments in the market and the company’s performance before making a decision on whether to invest.

Despite differing opinions, one thing is certain – ARCOSA has been consistently performing well in recent years, with a steady increase in revenue and earnings. This has been attributed to the company’s strategic acquisitions and expansion into new markets. Moreover, ARCOSA’s focus on innovation and sustainability has positioned it as a leader in its industry, making it an attractive prospect for investors looking for long-term growth opportunities. In conclusion, while the recent dip in ARCOSA’s stock price may raise some concerns, many experts believe that the company’s strong financials and market position make it a smart investment choice. It is important for investors to carefully assess their own risk tolerance and thoroughly research the company before making any investment decisions. Live Quote…

About the Company

  • ARCOSA_Soars_to_New_Heights_Experts_Weigh_in_on_Whether_its_Still_a_Smart_Investment”>Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Arcosa. ARCOSA_Soars_to_New_Heights_Experts_Weigh_in_on_Whether_its_Still_a_Smart_Investment”>More…

    Total Revenues Net Income Net Margin
    2.31k 158.6 5.6%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Arcosa. ARCOSA_Soars_to_New_Heights_Experts_Weigh_in_on_Whether_its_Still_a_Smart_Investment”>More…

    Operations Investing Financing
    261 -285.8 -30.8
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Arcosa. ARCOSA_Soars_to_New_Heights_Experts_Weigh_in_on_Whether_its_Still_a_Smart_Investment”>More…

    Total Assets Total Liabilities Book Value Per Share
    3.58k 1.25k 47.83
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Arcosa are shown below. ARCOSA_Soars_to_New_Heights_Experts_Weigh_in_on_Whether_its_Still_a_Smart_Investment”>More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    6.0% 4.8% 9.7%
    FCF Margin ROE ROA
    2.5% 6.0% 3.9%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Arcosa Intrinsic Value

    As a team at GoodWhale, we have carefully analyzed the wellbeing of ARCOSA and have come to the conclusion that their intrinsic value is around $65.4 per share. This valuation was calculated using our proprietary Valuation Line method, which takes into account various financial data and market trends. Currently, ARCOSA’s stock is trading at a price of $103.58 per share. This means that the stock is overvalued by 58.3% based on our calculations. This level of overvaluation may be a cause for concern for investors, as it indicates that the market price of the stock is significantly higher than its true worth. It is important to note that overvaluation can often lead to a correction in the stock price, as investors may eventually realize that they have paid too much for the stock. This could result in a decrease in the stock price and potential losses for shareholders. However, it is also possible that the market may continue to see potential in ARCOSA and the stock price may continue to rise. Ultimately, it is up to individual investors to weigh the risks and make informed decisions about their investments. As GoodWhale, our recommendation would be to closely monitor ARCOSA’s stock and keep an eye on any significant changes in its valuation. We believe that a more reasonable and sustainable price for the stock would be closer to our calculated intrinsic value of $65.4 per share. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    The company has a wide range of products and services that cover all aspects of infrastructure development, from design and construction to financing and operations. Arcosa Inc’s main competitors are Sterling Construction Co Inc, Trace SOP EOOD, BCPL Railway Infrastructure Ltd.

    – Sterling Construction Co Inc ($NASDAQ:STRL)

    Sterling Construction Co Inc is a construction company that specializes in the building of transportation infrastructure projects. The company has a market capitalization of $938.7 million as of 2022 and a return on equity of 19.94%. The company’s main operations are focused on the construction of highways, roads, bridges, and other transportation-related infrastructure projects.

    – Trace SOP EOOD ($LTS:0M7W)

    Trace SOP EOOD is a Bulgaria-based company engaged in the provision of software solutions. The Company offers a range of software products, including an accounting system, a human resources and payroll system, and a customer relationship management system, among others. Trace SOP EOOD has a market capitalization of 88.07M as of 2022, a return on equity of 3.34%. The company provides software solutions to businesses of all sizes, from small businesses to large enterprises. Trace SOP EOOD’s products are used by businesses in a variety of industries, including healthcare, manufacturing, retail, and government.

    – BCPL Railway Infrastructure Ltd ($BSE:542057)

    The market capitalization of BCPP Railway Infrastructure Ltd. as of 2022 was 729.99 million, with a return on equity of 9.17%. The company is engaged in the business of providing railway infrastructure services. It is a subsidiary of Bharat Cookware & Pressure Pipe Ltd.

    Summary

    ARCOSA, a provider of infrastructure and construction products, reached a new 52-week high on Monday. Some investors may question if it is still a good buy at this price. While the stock has experienced a strong upward trend over the past year, it is important to analyze the company’s financials and market trends before making an investment decision. Factors such as revenue growth, profit margins, and industry competition should be considered.

    Additionally, keeping an eye on any upcoming news or events that could impact the stock’s performance can help guide investment decisions. Ultimately, thorough analysis and staying informed are key to making smart investment choices in ARCOSA.

    Recent Posts

    Leave a Comment