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Is Now An Opportune Moment To Examine Meta Financial Group, Inc. (NASDAQ:CASH)?

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Simply Wall St
·3 min read
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Meta Financial Group, Inc. (NASDAQ:CASH), operating in the financial services industry based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Meta Financial Group’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Meta Financial Group

Is Meta Financial Group still cheap?

Good news, investors! Meta Financial Group is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $22.80, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Meta Financial Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Meta Financial Group look like?

NasdaqGS:CASH Past and Future Earnings April 29th 2020
NasdaqGS:CASH Past and Future Earnings April 29th 2020

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. Though in the case of Meta Financial Group, it is expected to deliver a highly negative earnings growth in the upcoming, 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? Although CASH 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 CASH, 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 CASH for some time, but hesitant on making the leap, I recommend you research further 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 Meta Financial Group. You can find everything you need to know about Meta Financial Group in the latest infographic research report. If you are no longer interested in Meta Financial Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.