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ChromaDex Corporation (NASDAQ:CDXC), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQCM, rising to highs of US$10.54 and falling to the lows of US$7.73. 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 ChromaDex's current trading price of US$7.73 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 ChromaDex’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's the opportunity in ChromaDex?
Good news, investors! ChromaDex is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $11.98, but it is currently trading at US$7.73 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, ChromaDex’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from ChromaDex?
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. In the upcoming year, ChromaDex's earnings are expected to increase by 32%, 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? Since CDXC is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 CDXC for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CDXC. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
If you'd like to know more about ChromaDex as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 2 warning signs for ChromaDex you should know about.
If you are no longer interested in ChromaDex, 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. 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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