Is There Now An Opportunity In National Beverage Corp. (NASDAQ:FIZZ)?
National Beverage Corp. (NASDAQ:FIZZ), is not the largest company out there, but it saw a decent share price growth in the teens level on the NASDAQGS over the last few months. As a US$4.2b market cap stock, it seems odd National Beverage is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Let’s take a look at National Beverage’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for National Beverage
What's The Opportunity In National Beverage?
The stock is currently trading at US$44.91 on the share market, which means it is overvalued by 25% compared to my intrinsic value of $35.87. This means that the opportunity to buy National Beverage at a good price has disappeared! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that National Beverage’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 kind of growth will National Beverage generate?
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. However, with a relatively muted profit growth of 5.6% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for National Beverage, at least in the short term.
What This Means For You
Are you a shareholder? FIZZ’s future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe FIZZ should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on FIZZ for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
If you'd like to know more about National Beverage as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 2 warning signs for National Beverage you should be mindful of and 1 of them is concerning.
If you are no longer interested in National Beverage, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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