At US$30.10, Is Tandem Diabetes Care, Inc. (NASDAQ:TNDM) Worth Looking At Closely?

While Tandem Diabetes Care, Inc. (NASDAQ:TNDM) might not have the largest market cap around , it led the NASDAQGM gainers with a relatively large price hike in the past couple of weeks. While good news for shareholders, the company has traded much higher in the past year. 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? Let’s take a look at Tandem Diabetes Care’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Tandem Diabetes Care

What Is Tandem Diabetes Care Worth?

According to our valuation model, Tandem Diabetes Care seems to be fairly priced at around 14% below our intrinsic value, which means if you buy Tandem Diabetes Care today, you’d be paying a fair price for it. And if you believe that the stock is really worth $34.83, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Tandem Diabetes Care’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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.

What does the future of Tandem Diabetes Care look like?

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. Tandem Diabetes Care's earnings over the next few years are expected to increase by 85%, 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 already priced in TNDM’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. 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 tabs on TNDM, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.

If you'd like to know more about Tandem Diabetes Care as a business, it's important to be aware of any risks it's facing. For example - Tandem Diabetes Care has 2 warning signs we think you should be aware of.

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

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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.