ADT Inc. (NYSE:ADT), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The recent jump in the share price has meant that the company is trading around its 52-week high. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at ADT’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Our free stock report includes 1 warning sign investors should be aware of before investing in ADT. Read for free now.

What's The Opportunity In ADT?

Good news, investors! ADT 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 ADT’s ratio of 11.87x is below its peer average of 18.94x, which indicates the stock is trading at a lower price compared to the Consumer Services industry. What’s more interesting is that, ADT’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Check out our latest analysis for ADT

What kind of growth will ADT generate?NYSE:ADT Earnings and Revenue Growth May 14th 2025

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 a relatively muted revenue growth of 8.4% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for ADT, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since ADT 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 ADT for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ADT. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Story Continues

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Every company has risks, and we've spotted 1 warning sign for ADT you should know about.

If you are no longer interested in ADT, 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.

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