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When Should You Buy Hooker Furniture Corporation (NASDAQ:HOFT)?

Bryan Cramer

Hooker Furniture Corporation (NASDAQ:HOFT), a consumer durables company based in United States, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $51.8 and falling to the lows of $38.6. 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 Hooker Furniture’s current trading price of $38.6 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 Hooker Furniture’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Hooker Furniture

What’s the opportunity in Hooker Furniture?

According to my valuation model, Hooker Furniture seems to be fairly priced at around 19% below my intrinsic value, which means if you buy Hooker Furniture today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $47.91, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, it seems like Hooker Furniture’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from Hooker Furniture?

NasdaqGS:HOFT Future Profit Feb 2nd 18

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. 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. Hooker Furniture’s earnings over the next few years are expected to increase by 37.08%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has already priced in Hooker Furniture’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on Hooker Furniture, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, 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 Hooker Furniture. You can find everything you need to know about Hooker Furniture in the latest infographic research report. If you are no longer interested in Hooker Furniture, 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.