The Hackett Group, Inc. (NASDAQ:HCKT), which is in the it business, and is based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $19.45 and falling to the lows of $15.71. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hackett Group’s current trading price of $16.13 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 Hackett Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Hackett Group worth?
The stock is currently trading at US$16.13 on the share market, which means it is overvalued by 23.55% compared to my intrinsic value of $13.06. This means that the opportunity to buy Hackett Group at a good price has disappeared! In addition to this, it seems like Hackett Group’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Hackett Group 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. However, with a relatively muted profit growth of 6.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Hackett Group, at least in the short term.
What this means for you:
Are you a shareholder? HCKT’s 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 HCKT 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 an eye on HCKT for a while, 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 positive outlook 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 Hackett Group. You can find everything you need to know about Hackett Group in the latest infographic research report. If you are no longer interested in Hackett Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.