Is It Time To Consider Buying Lifetime Brands, Inc. (NASDAQ:LCUT)?

While Lifetime Brands, Inc. (NASDAQ:LCUT) might not have the largest market cap around , it saw a significant share price rise of 77% in the past couple of months on the NASDAQGS. The company is now trading at yearly-high levels following the recent surge in its share price. As a small cap stock, which tends to lack high analyst coverage, 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 take a look at Lifetime Brands’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Lifetime Brands

What's The Opportunity In Lifetime Brands?

Good news, investors! Lifetime Brands is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $17.25, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Lifetime Brands’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Lifetime Brands 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. Though in the case of Lifetime Brands, it is expected to deliver a relatively unexciting top-line growth of 5.9% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since LCUT is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 LCUT for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LCUT. 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.

If you'd like to know more about Lifetime Brands as a business, it's important to be aware of any risks it's facing. For instance, we've identified 3 warning signs for Lifetime Brands (1 shouldn't be ignored) you should be familiar with.

If you are no longer interested in Lifetime Brands, 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.