While Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) might not have the largest market cap around , it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$12.73 and falling to the lows of US$10.76. 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 Great Lakes Dredge & Dock's current trading price of US$11.00 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Great Lakes Dredge & Dock’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Great Lakes Dredge & Dock

What's The Opportunity In Great Lakes Dredge & Dock?

Great news for investors – Great Lakes Dredge & Dock is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Great Lakes Dredge & Dock’s ratio of 12.52x is below its peer average of 29.65x, which indicates the stock is trading at a lower price compared to the Construction industry. However, given that Great Lakes Dredge & Dock’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Great Lakes Dredge & Dock look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Great Lakes Dredge & Dock, it is expected to deliver a relatively unexciting earnings growth of 7.9%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since GLDD is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on GLDD for a while, now might be the time to enter the stock. Its future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GLDD. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed assessment.

If you'd like to know more about Great Lakes Dredge & Dock as a business, it's important to be aware of any risks it's facing. For example - Great Lakes Dredge & Dock has 1 warning sign we think you should be aware of.

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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.