Should You Investigate Haemonetics Corporation (NYSE:HAE) At US$134?

Haemonetics Corporation (NYSE:HAE), which is in the medical equipment business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NYSE. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Haemonetics’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Haemonetics

What is Haemonetics worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 10.14% above my intrinsic value, which means if you buy Haemonetics today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $121.23, there’s only an insignificant downside when the price falls to its real value. In addition to this, Haemonetics has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Haemonetics generate?

NYSE:HAE Past and Future Earnings, September 3rd 2019
NYSE:HAE Past and Future Earnings, September 3rd 2019

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. Haemonetics’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? HAE’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on HAE, now may not be the most optimal 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 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 Haemonetics. You can find everything you need to know about Haemonetics in the latest infographic research report. If you are no longer interested in Haemonetics, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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.

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. Thank you for reading.