Assessing Navient (NAVI) Valuation After Its Recent Short-Term Share Price Rebound
Navient (NAVI) has quietly drifted higher, with the stock up around 5% over the past week and 8% over the past month, even though its 1 year return remains negative.
See our latest analysis for Navient.
The recent 1 month share price return of just over 8 percent looks more like a short term sentiment reset than a full trend change. This is especially the case with the 1 year total shareholder return still in negative territory despite a strong 5 year total shareholder return.
If Navient’s move has you rethinking where the more durable stories might be, this is a good moment to explore fast growing stocks with high insider ownership.
With shares still down over the past year, positive revenue momentum, and analysts seeing little upside to the current price, the key question is whether Navient is undervalued today or if markets already reflect its future growth.
Most Popular Narrative: 2.6% Overvalued
With Navient last closing at $13.05 against a narrative fair value near $12.72, the current price bakes in a small premium to modeled upside.
Meaningful operating expense reductions tied to divestitures and ongoing simplification initiatives are on track, with the company reiterating an ambitious $400 million expense reduction target. Continued progress here should directly contribute to higher net margins and greater earnings leverage as volume scales.
Curious how cost cuts, faster revenue growth, and a lower future earnings multiple can still add up to upside potential? The narrative walks through the step by step math behind that conclusion, including how profitability and buybacks interact to shape the long range earnings power story.
Result: Fair Value of $12.72 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, elevated delinquencies and unpredictable regulatory shifts could pressure credit quality and earnings, which could quickly undermine the cost cutting and growth driven upside case.
Find out about the key risks to this Navient narrative.
Build Your Own Navient Narrative
If you would rather challenge these assumptions or rely on your own analysis, you can build a complete view yourself in just minutes: Do it your way.
A great starting point for your Navient research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
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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.
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