While National Beverage Corp. (NASDAQ:FIZZ) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. The recent share price gains has brought the company back closer to its yearly peak. As a US$4.7b market cap stock, it seems odd National Beverage is not more well-covered by analysts. Although, there is more of an opportunity for mispricing in stocks with low coverage, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let's examine National Beverage's valuation and outlook in more detail to determine if there's still a bargain opportunity.
See our latest analysis for National Beverage
What Is National Beverage Worth?
The stock seems fairly valued at the moment according to our valuation model. It's trading around 15.31% above our intrinsic value, which means if you buy National Beverage today, you'd be paying a relatively reasonable price for it. And if you believe that the stock is really worth $43.67, there's only an insignificant downside when the price falls to its real value. What's more, National Beverage's share price may be more stable over time (relative to the market), as indicated by its low beta.
Can we expect growth from National Beverage?
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. Though in the case of National Beverage, it is expected to deliver a relatively unexciting top-line growth of 4.0% in the next few years, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? It seems like the market has already priced in FIZZ's future outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you've been keeping tabs on FIZZ, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you'd like to know more about National Beverage as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 2 warning signs with National Beverage, and understanding these should be part of your investment process.
If you are no longer interested in National Beverage, 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.