Is It Too Late To Consider Buying National Beverage Corp. (NASDAQ:FIZZ)?

National Beverage Corp. (NASDAQ:FIZZ), might not be a large cap stock, but it saw a decent share price growth in the teens level on the NASDAQGS over the last few months. As a US$4.6b market cap stock, it seems odd National Beverage is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Let’s examine National Beverage’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for National Beverage

What's The Opportunity In National Beverage?

National Beverage appears to be overvalued by 22% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$48.68 on the market compared to my intrinsic value of $40.02. Not the best news for investors looking to buy! Furthermore, National Beverage’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What kind of growth will National Beverage generate?

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 revenue growth of 4.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for National Beverage, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in FIZZ’s future outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe FIZZ should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on FIZZ for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook means it’s worth diving deeper into other factors 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. In terms of investment risks, we've identified 2 warning signs with National Beverage, and understanding these should be part of your investment process.

If you are no longer interested in National Beverage, 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.