Should you be thinking about buying II-VI Incorporated (NASDAQ: IIVI) now?
II-VI Incorporated (NASDAQ: IIVI), is not the largest company in the market, but it has received a lot of attention due to a substantial price movement on the NASDAQGS in recent months, rising to 74 US $ 08 at one point, and falling to an all-time low of US $ 59.94. Certain movements in stock prices can give investors a better opportunity to get into the stock, and potentially buy at a lower price. One question to answer is whether the current price of US $ 63.60 of II-VI reflects the true value of the mid cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of II-VI based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for II-VI
Is the II-VI still cheap?
Good news for investors – II-VI is still trading fairly low. My valuation model shows that the intrinsic value of the stock is $ 91.10, but that it is currently trading at US $ 63.60 in the stock market, which means there is still a opportunity to buy now. However, since the II-VI share is quite volatile (i.e. its price movements are amplified relative to the rest of the market), it could mean that the price may go down, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator of stock price volatility.
What kind of growth will II-VI generate?
Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s take a look at the future expectations of the business as well. Profits of II-VI over the next few years are expected to increase by 51%, indicating a very optimistic future ahead. This should lead to more robust cash flow, fueling a higher value of the stock.
What this means for you:
Are you a shareholder? Since IIVI is currently undervalued, maybe now is a great time to build up more of your holdings in inventory. With a positive outlook on the horizon, it seems that this growth has not yet been fully reflected in the share price. However, there are also other factors such as the capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping your eye on IIVI for a while, it might be time to get into the stock. Its prosperous future prospects are not yet fully reflected in the current share price, which means it is not too late to buy IIVI. But before making any investment decisions, consider other factors such as the track record of its management team, in order to make an informed purchase.
Diving deeper into the forecast for II-VI mentioned earlier will help you understand how analysts view the stock going forward. At Simply Wall St, we have analyst estimates that you can view by clicking here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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