Stock Analysis

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

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NasdaqCM:ICAD
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While iCAD, Inc. (NASDAQ:ICAD) might not be the most widely known stock at the moment, it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQCM. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine iCAD’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for iCAD

What is iCAD worth?

Great news for investors – iCAD is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $25.22, but it is currently trading at US$16.69 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because iCAD’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will iCAD generate?

earnings-and-revenue-growth
NasdaqCM:ICAD Earnings and Revenue Growth June 25th 2021

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. In the upcoming year, iCAD's earnings are expected to increase by 48%, 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 ICAD is currently undervalued, it may be a great time to accumulate more of 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 ICAD for a while, now might be the time to enter the stock. Its buoyant 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 investment decision.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of iCAD.

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What are the risks and opportunities for iCAD?

iCAD, Inc. provides image analysis, workflow solutions, and radiation therapy for the treatment of cancer in the United States.

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Rewards

  • Earnings are forecast to grow 85.62% per year

Risks

  • Does not have a meaningful market cap ($58M)

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