Stock Analysis

Should You Investigate The Middleby Corporation (NASDAQ:MIDD) At US$174?

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NasdaqGS:MIDD
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While The Middleby Corporation (NASDAQ:MIDD) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$194 and falling to the lows of US$166. 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 Middleby's current trading price of US$174 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 Middleby’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Middleby

What is Middleby worth?

Great news for investors – Middleby is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $229.37, but it is currently trading at US$174 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Middleby’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 Middleby generate?

earnings-and-revenue-growth
NasdaqGS:MIDD Earnings and Revenue Growth September 30th 2021

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. With profit expected to grow by 65% over the next couple of years, the future seems bright for Middleby. 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? Since MIDD is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MIDD for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MIDD. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you want to dive deeper into Middleby, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 2 warning signs for Middleby you should know about.

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

Valuation is complex, but we're helping make it simple.

Find out whether Middleby is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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