While Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$12.88 and falling to the lows of US$10.29. 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 Loma Negra Compañía Industrial Argentina Sociedad Anónima's current trading price of US$11.04 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 Loma Negra Compañía Industrial Argentina Sociedad Anónima’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What's The Opportunity In Loma Negra Compañía Industrial Argentina Sociedad Anónima?

Good news, investors! Loma Negra Compañía Industrial Argentina Sociedad Anónima is still a bargain right now according to our price multiple model, which compares 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 Loma Negra Compañía Industrial Argentina Sociedad Anónima’s ratio of 8.99x is below its peer average of 17.14x, which indicates the stock is trading at a lower price compared to the Basic Materials industry. However, given that Loma Negra Compañía Industrial Argentina Sociedad Anónima’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.

View our latest analysis for Loma Negra Compañía Industrial Argentina Sociedad Anónima

What kind of growth will Loma Negra Compañía Industrial Argentina Sociedad Anónima generate?

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 an extremely negative double-digit change in profit expected next year, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Loma Negra Compañía Industrial Argentina Sociedad Anónima, at least in the near future.

What This Means For You

Are you a shareholder? Although LOMA is currently trading below the industry PE ratio, the negative profit outlook does bring on some uncertainty, which equates to higher risk. We recommend you think about whether you want to increase your portfolio exposure to LOMA, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on LOMA for some time, but hesitant on making the leap, we recommend you research further into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Diving deeper into the forecasts for Loma Negra Compañía Industrial Argentina Sociedad Anónima mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here .

If you are no longer interested in Loma Negra Compañía Industrial Argentina Sociedad Anónima, 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.