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Daré Bioscience, Inc. (NASDAQ:DARE), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the NASDAQCM. 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, what if the stock is still a bargain? Let’s take a look at Daré Bioscience’s outlook and value based on the most recent financial data to see if the opportunity still exists.
What's the opportunity in Daré Bioscience?
Great news for investors – Daré Bioscience is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $1.87, but it is currently trading at US$1.39 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Daré Bioscience’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.
Can we expect growth from Daré Bioscience?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Though in the case of Daré Bioscience, it is expected to deliver a relatively unexciting earnings growth of 7.7%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since DARE is currently undervalued, it may be a great time to increase your holdings in the stock. 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 DARE for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DARE. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
If you want to dive deeper into Daré Bioscience, you'd also look into what risks it is currently facing. For instance, we've identified 5 warning signs for Daré Bioscience (2 are a bit concerning) you should be familiar with.
If you are no longer interested in Daré Bioscience, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. 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.
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