Is There Now An Opportunity In The Hain Celestial Group, Inc. (NASDAQ:HAIN)?
The Hain Celestial Group, Inc. (NASDAQ:HAIN), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$18.21 at one point, and dropping to the lows of US$11.82. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hain Celestial Group's current trading price of US$12.07 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hain Celestial Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Hain Celestial Group
What's The Opportunity In Hain Celestial Group?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.7% below my intrinsic value, which means if you buy Hain Celestial Group today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $12.16, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Hain Celestial Group has a low beta, which suggests its share price is less volatile than the wider market.
What does the future of Hain Celestial Group look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With revenues expected to grow by a double-digit 11% over the next couple of years, the outlook is positive for Hain Celestial Group. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? It seems like the market has already priced in HAIN’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on HAIN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you'd like to know more about Hain Celestial Group as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for Hain Celestial Group you should be aware of.
If you are no longer interested in Hain Celestial Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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