Is It Too Late To Consider Buying Kforce Inc. (NASDAQ:KFRC)?

Kforce Inc. (NASDAQ:KFRC), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. 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. However, what if the stock is still a bargain? Today I will analyse the most recent data on Kforce’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Kforce

What Is Kforce Worth?

Great news for investors – Kforce is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $79.16, but it is currently trading at US$58.41 on the share market, meaning that there is still an opportunity to buy now. Kforce’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from Kforce?

earnings-and-revenue-growth

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. Though in the case of Kforce, it is expected to deliver a relatively unexciting earnings growth of 2.0%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Kforce, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since KFRC is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on KFRC for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy KFRC. 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 Kforce as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 2 warning signs for Kforce and you'll want to know about these.

If you are no longer interested in Kforce, 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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