Is Now An Opportune Moment To Examine National Beverage Corp. (NASDAQ:FIZZ)?

National Beverage Corp. (NASDAQ:FIZZ), is not the largest company out there, but it saw a decent share price growth of 15% on the NASDAQGS over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a US$4.2b 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 take a look at National Beverage’s outlook and value based on the most recent financial data to see if the opportunity still exists.

We've discovered 1 warning sign about National Beverage. View them for free.

What Is National Beverage Worth?

Great news for investors – National Beverage is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $66.84, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that National Beverage’s share price may be 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.

View our latest analysis for National Beverage

What does the future of National Beverage 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. 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. However, with a relatively muted revenue growth of 4.6% 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? Even though growth is relatively muted, since FIZZ 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on FIZZ for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FIZZ. 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.

So while earnings quality is important, it's equally important to consider the risks facing National Beverage at this point in time. In terms of investment risks, we've identified 1 warning sign with National Beverage, and understanding it 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.