Chengdu Guibao Science & Technology Co.,Ltd. (SZSE:300019), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the SZSE. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a 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 Chengdu Guibao Science & TechnologyLtd's outlook and value based on the most recent financial data to see if the opportunity still exists.
Is Chengdu Guibao Science & TechnologyLtd Still Cheap?
Great news for investors – Chengdu Guibao Science & TechnologyLtd is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is CN¥19.19, but it is currently trading at CN¥13.53 on the share market, meaning that there is still an opportunity to buy now. Chengdu Guibao Science & TechnologyLtd's share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from Chengdu Guibao Science & TechnologyLtd?
Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. Chengdu Guibao Science & TechnologyLtd's earnings over the next few years are expected to increase by 69%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since 300019 is currently undervalued, it may be a great time to accumulate more of 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you've been keeping an eye on 300019 for a while, now might be the time to make a leap. Its prosperous future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy 300019. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
If you want to dive deeper into Chengdu Guibao Science & TechnologyLtd, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 1 warning sign for Chengdu Guibao Science & TechnologyLtd you should know about.
If you are no longer interested in Chengdu Guibao Science & TechnologyLtd, 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.