What Is Henry Schein, Inc.'s (NASDAQ:HSIC) Share Price Doing?
Today we're going to take a look at the well-established Henry Schein, Inc. (NASDAQ:HSIC). The company's stock received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Henry Schein’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Henry Schein
Is Henry Schein still cheap?
Good news, investors! Henry Schein is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $119.60, but it is currently trading at US$78.90 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Henry Schein’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Henry Schein look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 43% over the next couple of years, the future seems bright for Henry Schein. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since HSIC is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 HSIC for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HSIC. 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.
If you want to dive deeper into Henry Schein, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 2 warning signs for Henry Schein and you'll want to know about them.
If you are no longer interested in Henry Schein, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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. 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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