Is Now The Time To Look At Buying The Hain Celestial Group, Inc. (NASDAQ:HAIN)?

The Hain Celestial Group, Inc. (NASDAQ:HAIN), which is in the food business, and is based in United States, led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Hain Celestial Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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See our latest analysis for Hain Celestial Group

Is Hain Celestial Group still cheap?

Great news for investors – Hain Celestial Group is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $34.11, but it is currently trading at US$23.83 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Hain Celestial Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Hain Celestial Group?

NasdaqGS:HAIN Past and Future Earnings, May 23rd 2019
NasdaqGS:HAIN Past and Future Earnings, May 23rd 2019

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 an expected decline of -7.0% in revenues over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Hain Celestial Group. This certainty tips the risk-return scale towards higher risk.

What this means for you:

Are you a shareholder? Although HAIN is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to HAIN, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on HAIN for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Hain Celestial Group. You can find everything you need to know about Hain Celestial Group in the latest infographic research report. If you are no longer interested in Hain Celestial Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.