Staffing 360 Solutions Inc (NASDAQ:STAF), a professional services company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqCM. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Staffing 360 Solutions’s outlook and valuation to see if the opportunity still exists. Check out our latest analysis for Staffing 360 Solutions
Is Staffing 360 Solutions still cheap?Good news, investors! Staffing 360 Solutions is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $15.82, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Staffing 360 Solutions’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, 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 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. 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. With profit expected to grow by 70.05% over the next year, the near-term future seems bright for Staffing 360 Solutions. It looks like higher cash flows 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 Staffing 360 Solutions is currently undervalued, it may be a great time to increase 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on Staffing 360 Solutions for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Staffing 360 Solutions. 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 buy.
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.