Veru Inc (NASDAQ:VERU), a personal products company based in United States, received a lot of attention from a substantial price movement on the NasdaqCM in the over the last few months, increasing to $2.84 at one point, and dropping to the lows of $1.11. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether VERU’s current trading price of $1.16 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 VERU’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for VERU
What is VERU worth?
Great news for investors – VERU is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $1.72, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that VERU’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.
What kind of growth will VERU 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. 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 VERU future expectations. With revenues expected to grow by a double-digit 22.69% in the upcoming year, the outlook is positive for VERU. If the level of expenses is able to be maintained, it looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since VERU is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on VERU for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy VERU. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Veru. You can find everything you need to know about VERU in the latest infographic research report. If you are no longer interested in Veru, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass 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.