Atossa Genetics Inc (NASDAQ:ATOS), a medical equipment company based in United States, led the NasdaqCM gainers with a relatively large price hike in the past couple of weeks. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Atossa Genetics’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Atossa Genetics
What’s the opportunity in Atossa Genetics?Great news for investors – Atossa Genetics is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $2.85, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Atossa Genetics’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.
What does the future of Atossa Genetics 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. Though in the case of Atossa Genetics, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? Although ATOS is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to ATOS, 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 an eye on ATOS for a while, 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 Atossa Genetics. You can find everything you need to know about Atossa Genetics in the latest infographic research report. If you are no longer interested in Atossa Genetics, you can use our free platform to see my list of over 50 other stocks with a high growth potential.