Should You Investigate ClearPoint Neuro, Inc. (NASDAQ:CLPT) At US$6.18?

ClearPoint Neuro, Inc. (NASDAQ:CLPT), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NASDAQCM over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at ClearPoint Neuro’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for ClearPoint Neuro

What Is ClearPoint Neuro Worth?

Great news for investors – ClearPoint Neuro is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $9.59, but it is currently trading at US$6.18 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, ClearPoint Neuro’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 ClearPoint Neuro?

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. ClearPoint Neuro's earnings over the next few years are expected to increase by 23%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since CLPT is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 CLPT for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CLPT. 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 buy.

If you'd like to know more about ClearPoint Neuro as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that ClearPoint Neuro has 2 warning signs and it would be unwise to ignore these.

If you are no longer interested in ClearPoint Neuro, 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.