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Why Unisync Corp. (TSE:UNI) Could Be Worth Watching

While Unisync Corp. (TSE:UNI) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the TSX, rising to highs of CA$2.99 and falling to the lows of CA$2.40. 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 Unisync's current trading price of CA$2.48 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Unisync’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 Unisync

What's The Opportunity In Unisync?

According to my valuation model, the stock is currently overvalued by about 30%, trading at CA$2.48 compared to my intrinsic value of CA$1.91. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Given that Unisync’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Unisync?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. Unisync's revenue growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust 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 UNI’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe UNI 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.

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Are you a potential investor? If you’ve been keeping tabs on UNI for some time, 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 UNI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Unisync, you'd also look into what risks it is currently facing. For instance, we've identified 3 warning signs for Unisync (1 shouldn't be ignored) you should be familiar with.

If you are no longer interested in Unisync, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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