What Does OraSure Technologies, Inc.’s (NASDAQ:OSUR) Share Price Indicate?

OraSure Technologies, Inc. (NASDAQ:OSUR), which is in the medical equipment business, and is based in United States, received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at OraSure Technologies’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for OraSure Technologies

What is OraSure Technologies worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 7.03% above my intrinsic value, which means if you buy OraSure Technologies today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $8.19, then there isn’t really any room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that OraSure Technologies’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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of OraSure Technologies look like?

NasdaqGS:OSUR Past and Future Earnings, November 4th 2019
NasdaqGS:OSUR Past and Future Earnings, November 4th 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. 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. However, with a relatively muted profit growth of 9.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for OraSure Technologies, at least in the short term.

What this means for you:

Are you a shareholder? OSUR’s 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 tabs on OSUR, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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 OraSure Technologies. You can find everything you need to know about OraSure Technologies in the latest infographic research report. If you are no longer interested in OraSure Technologies, 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.