VOXX International Corporation (NASDAQ:VOXX), a automobiles and components company based in United States, saw a significant share price rise of over 20% in the past couple of months on the NasdaqGS. Less covered, small-stocks like VOXX sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could VOXX still be trading at a low price relative to its actual value? Let’s take a look at VOXX’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for VOXX
What is VOXX worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 19% above my intrinsic value, which means if you buy VOXX today, you’d be paying a relatively reasonable price for it. And if you believe VOXX’s true value is $6.92, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, it seems like VOXX’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because VOXX’s stock is less volatile than the wider market given its low beta.
Can we expect growth from VOXX?
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.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 VOXX future expectations. Though in the case of VOXX, it is expected to deliver a negative revenue growth of -10.91% next year, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? VOXX seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on VOXX, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on VOXX for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on VOXX should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on VOXX International. You can find everything you need to know about VOXX in the latest infographic research report. If you are no longer interested in VOXX International, 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.