What Is Acceleron Pharma Inc’s (XLRN) Share Price Doing?
Acceleron Pharma Inc (NASDAQ:XLRN), a pharmaceuticals, biotechnology and life sciences company based in United States, received a lot of attention from a substantial price increase on the NasdaqGM in the over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at XLRN’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Acceleron Pharma
What is XLRN worth?
Good news, investors! XLRN is still a bargain right now. In this instance, I’ve used price-to-book ratio (PB) ratio given that there is not enough information to reliably forecast the stock’s cash flows, and its earnings doesn’t seem to reflect its true value. I find that XLRN’s ratio of 7.7x is below its peer average of 14.9x, which suggests the stock is undervalued compared to the pharmaceuticals, biotechnology and life sciences industry. What’s more interesting is that, XLRN’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 XLRN moves relative to the rest of the market.
What does the future of XLRN look like?
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 profit growth of 5.99% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for XLRN, at least in the short term.
What this means for you:
Are you a shareholder? Since XLRN 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 XLRN for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy XLRN. 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 buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Acceleron Pharma. You can find everything you need to know about XLRN in the latest infographic research report. If you are no longer interested in Acceleron Pharma, 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.
