Why Omnicell, Inc. (NASDAQ:OMCL) Could Be Worth Watching

While Omnicell, Inc. (NASDAQ:OMCL) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Omnicell’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Omnicell

What Is Omnicell Worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 6.97% above my intrinsic value, which means if you buy Omnicell today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $68.87, there’s only an insignificant downside when the price falls to its real value. Furthermore, Omnicell’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Omnicell?

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. Though in the case of Omnicell, it is expected to deliver a highly negative earnings growth in the upcoming, 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? Currently, OMCL appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on OMCL for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on OMCL should the price fluctuate below its true value.

If you'd like to know more about Omnicell as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for Omnicell and we think they deserve your attention.

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

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.