Yahoo Finance Is It Too Late To Consider Buying Azenta, Inc. (NASDAQ:AZTA)?
Azenta, Inc. (NASDAQ:AZTA), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$78.85 and falling to the lows of US$61.77. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Azenta's current trading price of US$61.90 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Azenta’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Azenta
What Is Azenta Worth?
Great news for investors – Azenta is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $86.75, but it is currently trading at US$61.90 on the share market, meaning that there is still an opportunity to buy now. However, given that Azenta’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Azenta?
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 an extreme expected decline in the top-line over the next couple of years, near-term growth is certainly not a driver of a buy decision. Even with a larger decline in expenses, it seems like high uncertainty is on the cards for Azenta.
What This Means For You
Are you a shareholder? Although AZTA is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to AZTA, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on AZTA for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
So while earnings quality is important, it's equally important to consider the risks facing Azenta at this point in time. At Simply Wall St, we found 1 warning sign for Azenta and we think they deserve your attention.
If you are no longer interested in Azenta, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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