Should You Investigate Kforce Inc. (NASDAQ:KFRC) At US$65.70?

While Kforce Inc. (NASDAQ:KFRC) might not be the most widely known stock at the moment, it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Kforce’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Kforce

What Is Kforce Worth?

According to my valuation model, Kforce seems to be fairly priced at around 13% below my intrinsic value, which means if you buy Kforce today, you’d be paying a fair price for it. And if you believe that the stock is really worth $75.12, then there’s not much of an upside to gain from mispricing. Furthermore, Kforce’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Kforce?

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. However, with a relatively muted profit growth of 6.6% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Kforce, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in KFRC’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 track record of its management team. 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 KFRC, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Every company has risks, and we've spotted 2 warning signs for Kforce you should know about.

If you are no longer interested in Kforce, 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.