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Integer Holdings Corporation (NYSE:ITGR), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Integer Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Is Integer Holdings still cheap?
The stock is currently trading at US$93.56 on the share market, which means it is overvalued by 22% compared to my intrinsic value of $76.49. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Integer Holdings’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 Integer Holdings look like?
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. Integer Holdings' earnings over the next few years are expected to increase by 78%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? It seems like the market has well and truly priced in ITGR’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 ITGR 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 ITGR 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 is encouraging for ITGR, which 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 Integer Holdings as a business, it's important to be aware of any risks it's facing. For instance, we've identified 2 warning signs for Integer Holdings (1 doesn't sit too well with us) you should be familiar with.
If you are no longer interested in Integer Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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. 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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