Advertisement
U.S. markets open in 2 hours 59 minutes
  • S&P Futures

    5,305.00
    -3.25 (-0.06%)
     
  • Dow Futures

    40,133.00
    -11.00 (-0.03%)
     
  • Nasdaq Futures

    18,488.50
    -15.25 (-0.08%)
     
  • Russell 2000 Futures

    2,136.90
    -1.50 (-0.07%)
     
  • Crude Oil

    81.93
    +0.58 (+0.71%)
     
  • Gold

    2,220.30
    +7.60 (+0.34%)
     
  • Silver

    24.62
    -0.13 (-0.51%)
     
  • EUR/USD

    1.0790
    -0.0040 (-0.37%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    12.97
    +0.19 (+1.49%)
     
  • GBP/USD

    1.2612
    -0.0026 (-0.20%)
     
  • USD/JPY

    151.3920
    +0.1460 (+0.10%)
     
  • Bitcoin USD

    70,326.62
    +157.39 (+0.22%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,960.45
    +28.47 (+0.36%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Should You Investigate Hays plc (LON:HAS) At UK£1.21?

Hays plc (LON:HAS), might not be a large cap stock, but it saw significant share price movement during recent months on the LSE, rising to highs of UK£1.32 and falling to the lows of UK£1.12. 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 Hays' current trading price of UK£1.21 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hays’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Hays

What's the opportunity in Hays?

Good news, investors! Hays is still a bargain right now. According to my valuation, the intrinsic value for the stock is £2.02, 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 Hays’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 Hays look like?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. With profit expected to grow by 51% over the next couple of years, the future seems bright for Hays. 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 HAS is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 HAS for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HAS. 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 investment decision.

Diving deeper into the forecasts for Hays mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Hays, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Advertisement