BioTelemetry, Inc. (NASDAQ:BEAT), which is in the healthcare business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $77.59 at one point, and dropping to the lows of $54.94. 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 BioTelemetry's current trading price of $58.57 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 BioTelemetry’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Is BioTelemetry still cheap?
Great news for investors – BioTelemetry is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $82.83, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because BioTelemetry’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What does the future of BioTelemetry 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. With profit expected to grow by 44% over the next couple of years, the future seems bright for BioTelemetry. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since BEAT 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 BEAT for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BEAT. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, 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 BioTelemetry. You can find everything you need to know about BioTelemetry in the latest infographic research report. If you are no longer interested in BioTelemetry, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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