When Should You Buy National Beverage Corp. (NASDAQ:FIZZ)?

While National Beverage Corp. (NASDAQ:FIZZ) might not have the largest market cap around , it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$53.14 and falling to the lows of US$46.13. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether National Beverage's current trading price of US$48.27 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the 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 there are any catalysts for a price change.

Check out our latest analysis for National Beverage

What's The Opportunity In National Beverage?

Great news for investors – National Beverage is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $63.04, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. 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.

Can we expect growth from National Beverage?

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 3.1% 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 financial health 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 track record of its management team, in order to make a well-informed investment decision.

If you'd like to know more about National Beverage as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 1 warning sign for National Beverage and you'll want to know about it.

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.