Progenics Pharmaceuticals Inc (NASDAQ:PGNX), a biotechnology company based in United States, saw a significant share price rise of over 20% in the past couple of months on the NasdaqGS. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at PGNX’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for PGNX
What is PGNX worth?
The stock is currently trading at $7.21 on the share market, which means it is overvalued by 27% compared to my intrinsic value of $5.66. This means that the opportunity to buy PGNX at a good price has disappeared! But, is there another opportunity to buy low in the future? Since PGNX’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much PGNX moves relative to the rest of the market.
Can we expect growth from PGNX?
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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for PGNX, at least in the near future.
What this means for you:
Are you a shareholder? If you believe PGNX 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. Given the risk from a negative growth outlook, this could be the right time to de-risk your portfolio. 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 tabs on PGNX for some time, now may not be the best time to enter into the stock. Its price has risen beyond its true value, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Progenics Pharmaceuticals. You can find everything you need to know about PGNX in the latest infographic research report. If you are no longer interested in Progenics Pharmaceuticals, 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.