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At US$7.31, Is Lifetime Brands, Inc. (NASDAQ:LCUT) Worth Looking At Closely?

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Simply Wall St
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Lifetime Brands, Inc. (NASDAQ:LCUT), which is in the consumer durables business, and is based in United States, led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Lifetime Brands’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Lifetime Brands

What is Lifetime Brands worth?

Good news, investors! Lifetime Brands is still a bargain right now. According to my valuation, the intrinsic value for the stock is $14.41, but it is currently trading at US$7.31 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Lifetime Brands’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Lifetime Brands?

NasdaqGS:LCUT Past and Future Earnings, January 3rd 2020
NasdaqGS:LCUT Past and Future Earnings, January 3rd 2020

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 Lifetime Brands, it is expected to deliver a relatively unexciting top-line growth of 7.7% in the next few years, 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? Even though growth is relatively muted, since LCUT 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on LCUT for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LCUT. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Lifetime Brands. You can find everything you need to know about Lifetime Brands in the latest infographic research report. If you are no longer interested in Lifetime Brands, 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.