Yahoo Finance Should You Buy PerkinElmer Inc (NYSE:PKI) Now?
PerkinElmer Inc (NYSE:PKI), a life sciences company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $79.39 and falling to the lows of $72.17. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether PerkinElmer’s current trading price of $76.35 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 PerkinElmer’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 PerkinElmer
Is PerkinElmer still cheap?
PerkinElmer appears to be overvalued by 31.66% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$76.35 on the market compared to my intrinsic value of $57.99. This means that the opportunity to buy PerkinElmer at a good price has disappeared! Furthermore, PerkinElmer’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.
What kind of growth will PerkinElmer generate?
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. PerkinElmer’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? It seems like the market has well and truly priced in PKI’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe PKI 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 an eye on PKI for a while, 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 is encouraging for PKI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on PerkinElmer. You can find everything you need to know about PerkinElmer in the latest infographic research report. If you are no longer interested in PerkinElmer, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
