Should You Buy Strata Skin Sciences Inc (NASDAQ:SSKN) Now?
Strata Skin Sciences Inc (NASDAQ:SSKN), a medical equipment 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 $1.48 at one point, and dropping to the lows of $1.15. 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 Strata Skin Sciences’s current trading price of $1.17 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 Strata Skin Sciences’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 Strata Skin Sciences
Is Strata Skin Sciences still cheap?
Great news for investors – Strata Skin Sciences is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $11.11, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Strata Skin Sciences’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of Strata Skin Sciences 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. Strata Skin Sciences’s earnings over the next few years are expected to increase by 95.22%, 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? Since SSKN is currently undervalued, it may be a great time to accumulate more of 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 SSKN 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 SSKN. 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 investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Strata Skin Sciences. You can find everything you need to know about Strata Skin Sciences in the latest infographic research report. If you are no longer interested in Strata Skin Sciences, 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.
