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Looking At Navient Corporation (NASDAQ:NAVI) From All Angles

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Navient Corporation (NASDAQ:NAVI), it is a highly-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Navient here.

Established dividend payer and good value

NAVI’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if NAVI’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, NAVI’s share price is trading below the group’s average. This bolsters the proposition that NAVI’s price is currently discounted.

NasdaqGS:NAVI Intrinsic Value Export September 6th 18
NasdaqGS:NAVI Intrinsic Value Export September 6th 18

For those seeking income streams from their portfolio, NAVI is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.7%, making it one of the best dividend companies in the market.

NasdaqGS:NAVI Historical Dividend Yield September 6th 18
NasdaqGS:NAVI Historical Dividend Yield September 6th 18

Next Steps:

For Navient, there are three fundamental factors you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for NAVI’s future growth? Take a look at our free research report of analyst consensus for NAVI’s outlook.

  2. Historical Performance: What has NAVI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NAVI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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 editorial-team@simplywallst.com.