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Is There Now An Opportunity In QCR Holdings Inc (QCRH)?

Sean Barnes

QCR Holdings Inc (NASDAQ:QCRH), operating in the financial services industry based in United States, received a lot of attention from a substantial price movement on the NasdaqGM in the over the last few months, increasing to $49.05 at one point, and dropping to the lows of $41.5. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether QCRH’s current trading price of $44.7 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 QCRH’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 QCR Holdings

What is QCRH worth?

The stock is currently trading at $44.7 on the share market, which means it is overvalued by 56% compared to my intrinsic value of $28.65. This means that the opportunity to buy QCRH at a good price has disappeared! In addition to this, it seems like QCRH’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because QCRH’s stock is less volatile than the wider market given its low beta.

Can we expect growth from QCRH?

NasdaqGM:QCRH Future Profit Nov 25th 17

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 QCRH future expectations. With profit expected to grow by 37.10% over the next couple of years, the future seems bright for QCRH. It looks like higher cash flows 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 well and truly priced in QCRH’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe QCRH 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 an eye on QCRH for a while, 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 optimistic prospect is encouraging for QCRH, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on QCR Holdings. You can find everything you need to know about QCRH in the latest infographic research report. If you are no longer interested in QCR Holdings, 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.