Yahoo Finance Should You Investigate Verint Systems Inc. (NASDAQ:VRNT) At US$40.65?
Verint Systems Inc. (NASDAQ:VRNT), which is in the software business, and is based in United States, received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $50.1 at one point, and dropping to the lows of $40.51. 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 Verint Systems’s current trading price of $40.65 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 Verint Systems’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 Verint Systems
Is Verint Systems still cheap?
According to my valuation model, Verint Systems seems to be fairly priced at around 7.85% above my intrinsic value, which means if you buy Verint Systems today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $37.69, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Verint Systems’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What does the future of Verint Systems look like?
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. Verint Systems’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? VRNT’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on VRNT, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Verint Systems. You can find everything you need to know about Verint Systems in the latest infographic research report. If you are no longer interested in Verint Systems, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
