Stock Analysis

Is There Now An Opportunity In LeMaitre Vascular, Inc. (NASDAQ:LMAT)?

NasdaqGM:LMAT
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LeMaitre Vascular, Inc. (NASDAQ:LMAT), might not be a large cap stock, but it led the NASDAQGM gainers with a relatively large price hike in the past couple of weeks. The company is now trading at yearly-high levels following the recent surge in its share price. 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 LeMaitre Vascular’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for LeMaitre Vascular

Is LeMaitre Vascular Still Cheap?

The stock is currently trading at US$81.38 on the share market, which means it is overvalued by 23% compared to our intrinsic value of $66.21. This means that the buying opportunity has probably disappeared for now. Furthermore, LeMaitre Vascular’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of LeMaitre Vascular look like?

earnings-and-revenue-growth
NasdaqGM:LMAT Earnings and Revenue Growth June 18th 2024

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. LeMaitre Vascular's earnings over the next few years are expected to increase by 53%, 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? It seems like the market has well and truly priced in LMAT’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe LMAT should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on LMAT for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for LMAT, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about LeMaitre Vascular as a business, it's important to be aware of any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of LeMaitre Vascular.

If you are no longer interested in LeMaitre Vascular, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com