What Is Fox Factory Holding Corp.'s (NASDAQ:FOXF) Share Price Doing?

Fox Factory Holding Corp. (NASDAQ:FOXF), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$123 and falling to the lows of US$88.92. 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 Fox Factory Holding's current trading price of US$94.34 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 Fox Factory Holding’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Fox Factory Holding

What's The Opportunity In Fox Factory Holding?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 7.7% below my intrinsic value, which means if you buy Fox Factory Holding today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $102.19, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Fox Factory Holding’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will Fox Factory Holding generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Though in the case of Fox Factory Holding, it is expected to deliver a relatively unexciting earnings growth of 4.0%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Fox Factory Holding, at least in the near term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in FOXF’s future outlook, 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 an eye on FOXF, now may not be the most optimal 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.

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. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Fox Factory Holding, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.