Today we're going to take a look at the well-established Bio-Rad Laboratories, Inc. (NYSE:BIO). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a large-cap stock, it seems odd Bio-Rad Laboratories is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Let’s examine Bio-Rad Laboratories’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
What is Bio-Rad Laboratories worth?
Good news, investors! Bio-Rad Laboratories is still a bargain right now. According to my valuation, the intrinsic value for the stock is $560.93, but it is currently trading at US$354 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Bio-Rad Laboratories’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 Bio-Rad Laboratories?
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. 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 a relatively muted revenue growth of 3.9% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for Bio-Rad Laboratories.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since BIO is currently undervalued, it may be a great time to increase 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 BIO 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 BIO. 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 Bio-Rad Laboratories. You can find everything you need to know about Bio-Rad Laboratories in the latest infographic research report. If you are no longer interested in Bio-Rad Laboratories, 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 firstname.lastname@example.org. 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.
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