Yahoo Finance When Should You Buy Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)?
Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI), is not the largest company out there, but it saw a significant share price rise of 25% in the past couple of months on the NASDAQGM. The company is inching closer to its yearly highs following the recent share price climb. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Ollie's Bargain Outlet Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Ollie's Bargain Outlet Holdings
What Is Ollie's Bargain Outlet Holdings Worth?
Ollie's Bargain Outlet Holdings appears to be overvalued by 24% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$85.40 on the market compared to our intrinsic value of $69.07. Not the best news for investors looking to buy! Another thing to keep in mind is that Ollie's Bargain Outlet Holdings’s share price is quite stable relative to the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Can we expect growth from Ollie's Bargain Outlet Holdings?
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. However, with a relatively muted profit growth of 4.9% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Ollie's Bargain Outlet Holdings, at least in the short term.
What This Means For You
Are you a shareholder? OLLI’s future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe OLLI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on OLLI for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts.
If you are no longer interested in Ollie's Bargain Outlet Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
