Should You Think About Buying Lincoln Educational Services Corporation (NASDAQ:LINC) Now?

Lincoln Educational Services Corporation (NASDAQ:LINC), is not the largest company out there, but it saw a decent share price growth of 12% on the NASDAQGS over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. 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? Let’s examine Lincoln Educational Services’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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Is Lincoln Educational Services Still Cheap?

According to our valuation model, Lincoln Educational Services seems to be fairly priced at around 1.4% below our intrinsic value, which means if you buy Lincoln Educational Services today, you’d be paying a fair price for it. And if you believe that the stock is really worth $21.29, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Lincoln Educational Services’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.

View our latest analysis for Lincoln Educational Services

What does the future of Lincoln Educational Services look like?

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 30% over the next year, the near-term future seems bright for Lincoln Educational Services. 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? It seems like the market has already priced in LINC’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on LINC, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Lincoln Educational Services, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Lincoln Educational Services and we think they deserve your attention.

If you are no longer interested in Lincoln Educational Services, 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.