Should You Think About Buying OptimizeRx Corporation (NASDAQ:OPRX) Now?
OptimizeRx Corporation (NASDAQ:OPRX), might not be a large cap stock, but it saw a decent share price growth in the teens level on the NASDAQCM over the last few months. As a stock with high coverage 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? Today I will analyse the most recent data on OptimizeRx’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for OptimizeRx
What's The Opportunity In OptimizeRx?
According to my valuation model, OptimizeRx seems to be fairly priced at around 9.9% below my intrinsic value, which means if you buy OptimizeRx today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $16.00, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, OptimizeRx’s low beta implies that the stock is less volatile than the wider market.
What does the future of OptimizeRx look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for OptimizeRx, at least in the near future.
What This Means For You
Are you a shareholder? OPRX seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on OPRX for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on OPRX should the price fluctuate below its true value.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For instance, we've identified 2 warning signs for OptimizeRx (1 can't be ignored) you should be familiar with.
If you are no longer interested in OptimizeRx, 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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