Have Investors Priced In Agile Therapeutics Inc’s (NASDAQ:AGRX) Growth?
Agile Therapeutics Inc (NASDAQ:AGRX), a pharmaceuticals company based in United States, saw a decent share price growth in the teens level on the NasdaqGM over the last few months. 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. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Agile Therapeutics’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Agile Therapeutics
What’s the opportunity in Agile Therapeutics?
Great news for investors – Agile Therapeutics is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $41.51, but it is currently trading at US$2.69 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Agile Therapeutics’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Agile Therapeutics look like?
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 the company’s future expectations. 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 Agile Therapeutics, at least in the near future.
What this means for you:
Are you a shareholder? Although AGRX is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to AGRX, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on AGRX for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Agile Therapeutics. You can find everything you need to know about Agile Therapeutics in the latest infographic research report. If you are no longer interested in Agile Therapeutics, 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.
