When Should You Buy OptimizeRx Corporation (NASDAQ:OPRX)?

OptimizeRx Corporation (NASDAQ:OPRX), which is in the healthcare services business, and is based in United States, saw a decent share price growth in the teens level on the NasdaqCM over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine OptimizeRx’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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What is OptimizeRx worth?

According to my valuation model, OptimizeRx seems to be fairly priced at around 7.89% above my intrinsic value, which means if you buy OptimizeRx today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $10.46, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, OptimizeRx has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from OptimizeRx?

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. With profit expected to more than double over the next couple of years, the future seems bright for OptimizeRx. 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? OPRX’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on OPRX, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on OptimizeRx. You can find everything you need to know about OptimizeRx in the latest infographic research report. If you are no longer interested in OptimizeRx, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.