Is Now The Time To Look At Buying Bassett Furniture Industries, Incorporated (NASDAQ:BSET)?
Bassett Furniture Industries, Incorporated (NASDAQ:BSET), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Today I will analyse the most recent data on Bassett Furniture Industries’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Bassett Furniture Industries
What is Bassett Furniture Industries worth?
Good news, investors! Bassett Furniture Industries is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $23.69, but it is currently trading at US$17.23 on the share market, meaning that there is still an opportunity to buy now. However, given that Bassett Furniture Industries’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 Bassett Furniture Industries generate?
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 the company's future expectations. However, with a relatively muted profit growth of 6.2% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Bassett Furniture Industries, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since BSET is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on BSET for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BSET. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Every company has risks, and we've spotted 1 warning sign for Bassett Furniture Industries you should know about.
If you are no longer interested in Bassett Furniture Industries, 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.
