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Is It Time To Buy USANA Health Sciences Inc (NYSE:USNA)?

USANA Health Sciences Inc (NYSE:USNA), a personal products company based in United States, saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a US$2.86b market-cap stock, it seems odd USANA Health Sciences is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Let’s examine USANA Health Sciences’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for USANA Health Sciences

Is USANA Health Sciences still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 5.58% above my intrinsic value, which means if you buy USANA Health Sciences today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $112, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, it seems like USANA Health Sciences’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will USANA Health Sciences generate?

NYSE:USNA Future Profit June 22nd 18
NYSE:USNA Future Profit June 22nd 18

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 54.77% over the next year, the near-term future seems bright for USANA Health Sciences. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? USNA’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?

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Are you a potential investor? If you’ve been keeping an eye on USNA, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into 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 USANA Health Sciences. You can find everything you need to know about USANA Health Sciences in the latest infographic research report. If you are no longer interested in USANA Health Sciences, 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.