Is Now The Time To Look At Buying Glaukos Corporation (NYSE:GKOS)?

Glaukos Corporation (NYSE:GKOS), which is in the medical equipment business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$65.64 at one point, and dropping to the lows of US$54.18. 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 Glaukos's current trading price of US$58.25 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 Glaukos’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Glaukos

What's the opportunity in Glaukos?

Great news for investors – Glaukos is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $106.94, but it is currently trading at US$58.25 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Glaukos’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Glaukos?

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. Glaukos’s earnings over the next few years are expected to increase by 97%, 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 GKOS is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 GKOS 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 GKOS. 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 investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Glaukos. You can find everything you need to know about Glaukos in the latest infographic research report. If you are no longer interested in Glaukos, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.