Is There Now An Opportunity In Leejam Sports Company (TADAWUL:1830)?

Leejam Sports Company (TADAWUL:1830), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the SASE. As a 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 Leejam Sports’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Leejam Sports

What's The Opportunity In Leejam Sports?

The stock is currently trading at ر.س90.10 on the share market, which means it is overvalued by 29% compared to my intrinsic value of SAR70.00. Not the best news for investors looking to buy! In addition to this, it seems like Leejam Sports’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What does the future of Leejam Sports look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 31% over the next couple of years, the future seems bright for Leejam Sports. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in 1830’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe 1830 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.

Are you a potential investor? If you’ve been keeping tabs on 1830 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 1830, 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 Leejam Sports, you'd also look into what risks it is currently facing. While conducting our analysis, we found that Leejam Sports has 1 warning sign and it would be unwise to ignore this.

If you are no longer interested in Leejam Sports, 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.