Stock Analysis

Is It Too Late To Consider Buying iCAD, Inc. (NASDAQ:ICAD)?

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NasdaqCM:ICAD
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iCAD, Inc. (NASDAQ:ICAD), is not the largest company out there, but it led the NASDAQCM gainers with a relatively large price hike in the past couple of weeks. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Today I will analyse the most recent data on iCAD’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for iCAD

What's the opportunity in iCAD?

Good news, investors! iCAD is still a bargain right now. According to my valuation, the intrinsic value for the stock is $22.71, 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, iCAD’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 iCAD?

earnings-and-revenue-growth
NasdaqCM:ICAD Earnings and Revenue Growth January 31st 2021

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 59% over the next year, the near-term future seems bright for iCAD. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since ICAD is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 ICAD for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ICAD. 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 buy.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. While conducting our analysis, we found that iCAD has 2 warning signs and it would be unwise to ignore these.

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