Why BioLife Solutions, Inc. (NASDAQ:BLFS) Could Be Worth Watching

BioLife Solutions, Inc. (NASDAQ:BLFS), is not the largest company out there, but it led the NASDAQCM 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. 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. However, what if the stock is still a bargain? Today we will analyse the most recent data on BioLife Solutions’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for BioLife Solutions

What's The Opportunity In BioLife Solutions?

According to our valuation model, BioLife Solutions seems to be fairly priced at around 18% below our intrinsic value, which means if you buy BioLife Solutions today, you’d be paying a fair price for it. And if you believe that the stock is really worth $31.49, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because BioLife Solutions’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will BioLife Solutions generate?

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. BioLife Solutions' earnings over the next few years are expected to increase by 98%, 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? BLFS’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 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 BLFS, now may not be the most advantageous 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.

If you want to dive deeper into BioLife Solutions, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with BioLife Solutions, and understanding it should be part of your investment process.

If you are no longer interested in BioLife Solutions, 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.