Should You Think About Buying Centre Testing International Group Co. Ltd. (SZSE:300012) Now?

While Centre Testing International Group Co. Ltd. (SZSE:300012) might not have the largest market cap around , it led the SZSE gainers with a relatively large price hike in the past couple of weeks. While good news for shareholders, the company has traded much higher in the past year. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Centre Testing International Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Centre Testing International Group

Is Centre Testing International Group Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 9.16% above our intrinsic value, which means if you buy Centre Testing International Group today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth CN¥11.83, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Centre Testing International Group’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Centre Testing International Group?

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. Centre Testing International Group's earnings over the next few years are expected to increase by 34%, 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? It seems like the market has already priced in 300012’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. 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 300012, 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.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. Luckily, you can check out what analysts are forecasting by clicking here.

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

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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.