At US$135, Is Mesa Laboratories, Inc. (NASDAQ:MLAB) Worth Looking At Closely?

Mesa Laboratories, Inc. (NASDAQ:MLAB), might not be a large cap stock, but it saw a significant share price rise of 37% in the past couple of months on the NASDAQGS. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. 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? Today we will analyse the most recent data on Mesa Laboratories’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Mesa Laboratories

Is Mesa Laboratories Still Cheap?

According to our valuation model, Mesa Laboratories seems to be fairly priced at around 5.85% above our intrinsic value, which means if you buy Mesa Laboratories today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $127.90, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Mesa Laboratories has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Mesa Laboratories?

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. Mesa Laboratories' revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? MLAB’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 MLAB, now may not be the most advantageous 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Mesa Laboratories from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Mesa Laboratories, 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.