Should You Investigate Teleflex Incorporated (NYSE:TFX) At US$384?

Today we’re going to take a look at the well-established Teleflex Incorporated (NYSE:TFX). The company’s stock saw a decent share price growth in the teens level on the NYSE over the last few months. As a large-cap 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? Today I will analyse the most recent data on Teleflex’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Teleflex

Is Teleflex still cheap?

According to my valuation model, Teleflex seems to be fairly priced at around 12.31% above my intrinsic value, which means if you buy Teleflex today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $341.85, there’s only an insignificant downside when the price falls to its real value. What’s more, Teleflex’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Teleflex?

NYSE:TFX Past and Future Earnings, January 22nd 2020
NYSE:TFX Past and Future Earnings, January 22nd 2020

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 27% over the next couple of years, the future seems bright for Teleflex. 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? It seems like the market has already priced in TFX’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on TFX, 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 further examining 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 Teleflex. You can find everything you need to know about Teleflex in the latest infographic research report. If you are no longer interested in Teleflex, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.