Staffing 360 Solutions Inc (NASDAQ:STAF), a professional services company based in United States, saw a decent share price growth in the teens level on the NasdaqCM over the last few months. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine Staffing 360 Solutions’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Staffing 360 Solutions
What is Staffing 360 Solutions worth?Good news, investors! Staffing 360 Solutions is still a bargain right now. According to my valuation, the intrinsic value for the stock is $11.77, but it is currently trading at US$1.70 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Staffing 360 Solutions’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What kind of growth will Staffing 360 Solutions generate?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. In the upcoming year, Staffing 360 Solutions’s earnings are expected to increase by 97.73%, 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? Since STAF is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on STAF for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy STAF. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Staffing 360 Solutions. You can find everything you need to know about Staffing 360 Solutions in the latest infographic research report. If you are no longer interested in Staffing 360 Solutions, you can use our free platform to see my list of over 50 other stocks with a high growth potential.