Is It Time To Consider Buying Standard BioTools Inc. (NASDAQ:LAB)?

Standard BioTools Inc. (NASDAQ:LAB), might not be a large cap stock, but it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. The company is inching closer to its yearly highs following the recent share price climb. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Today we will analyse the most recent data on Standard BioTools’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Standard BioTools

What's The Opportunity In Standard BioTools?

The stock is currently trading at US$2.88 on the share market, which means it is overvalued by 38% compared to our intrinsic value of $2.09. This means that the opportunity to buy Standard BioTools at a good price has disappeared! But, is there another opportunity to buy low in the future? Given that Standard BioTools’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Standard BioTools?

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. However, with a relatively muted profit growth of 7.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Standard BioTools, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in LAB’s future outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe LAB should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on LAB for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about Standard BioTools as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 2 warning signs with Standard BioTools, and understanding these should be part of your investment process.

If you are no longer interested in Standard BioTools, 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.