At $58.9, Is It Time To Buy Maxim Integrated Products Inc (NASDAQ:MXIM)?
Today we’re going to take a look at the well-established Maxim Integrated Products Inc (NASDAQ:MXIM). The company’s stock saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Maxim Integrated Products’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Maxim Integrated Products
What is Maxim Integrated Products worth?
According to my valuation model, the stock is currently overvalued by about 53%, trading at US$58.90 compared to my intrinsic value of $38.53. This means that the opportunity to buy Maxim Integrated Products at a good price has disappeared! But, is there another opportunity to buy low in the future? Since Maxim Integrated Products’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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.
What does the future of Maxim Integrated Products look like?
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. With profit expected to more than double over the next couple of years, the future seems bright for Maxim Integrated Products. 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? MXIM’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe MXIM should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on MXIM for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for MXIM, which means 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 Maxim Integrated Products. You can find everything you need to know about Maxim Integrated Products in the latest infographic research report. If you are no longer interested in Maxim Integrated Products, 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.
