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At US$136, Is Helen of Troy Limited (NASDAQ:HELE) Worth Looking At Closely?

Simply Wall St
·3 min read

Helen of Troy Limited (NASDAQ:HELE), which is in the consumer durables business, and is based in Bermuda, received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Helen of Troy’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Helen of Troy

Is Helen of Troy still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13% below my intrinsic value, which means if you buy Helen of Troy today, you’d be paying a fair price for it. And if you believe that the stock is really worth $156.11, then there’s not much of an upside to gain from mispricing. Furthermore, Helen of Troy’s low beta implies that the stock is less volatile than the wider market.

What does the future of Helen of Troy look like?

NasdaqGS:HELE Past and Future Earnings April 8th 2020
NasdaqGS:HELE Past and Future Earnings April 8th 2020

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. Though in the case of Helen of Troy, it is expected to deliver a relatively unexciting earnings growth of 1.0%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What this means for you:

Are you a shareholder? It seems like the market has already priced in HELE’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on HELE, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Helen of Troy. You can find everything you need to know about Helen of Troy in the latest infographic research report. If you are no longer interested in Helen of Troy, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.