Should You Investigate TrustCo Bank Corp NY (NASDAQ:TRST) At US$8.01?

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TrustCo Bank Corp NY (NASDAQ:TRST), operating in the financial services industry based in United States, led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at TrustCo Bank Corp NY’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for TrustCo Bank Corp NY

Is TrustCo Bank Corp NY still cheap?

According to my relative valuation model, the stock seems to be currently fairly priced. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 12.58x is currently trading slightly below its industry peers’ ratio of 15.64x, which means if you buy TrustCo Bank Corp NY today, you’d be paying a reasonable price for it. And if you believe TrustCo Bank Corp NY should be trading in this range, then there isn’t much room for the share price grow beyond where it’s currently trading. Although, there may be an opportunity to buy in the future. This is because TrustCo Bank Corp NY’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from TrustCo Bank Corp NY?

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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. However, with a relatively muted profit growth of 1.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for TrustCo Bank Corp NY, at least in the short term.

What this means for you:

Are you a shareholder? TRST’s 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 financial strength of the company. Have these factors changed since the last time you looked at TRST? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on TRST, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive growth outlook may mean it’s worth diving deeper into other factors 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 TrustCo Bank Corp NY. You can find everything you need to know about TrustCo Bank Corp NY in the latest infographic research report. If you are no longer interested in TrustCo Bank Corp NY, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at [email protected].