Is It Too Late To Consider Buying Syneos Health, Inc. (NASDAQ:SYNH)?

By
Simply Wall St
Published
December 02, 2021
NasdaqGS:SYNH
Source: Shutterstock

Today we're going to take a look at the well-established Syneos Health, Inc. (NASDAQ:SYNH). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. 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? Let’s take a look at Syneos Health’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Syneos Health

What is Syneos Health worth?

Great news for investors – Syneos Health is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $129.13, but it is currently trading at US$98.65 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Syneos Health’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 Syneos Health generate?

earnings-and-revenue-growth
NasdaqGS:SYNH Earnings and Revenue Growth December 3rd 2021

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 87% over the next couple of years, the future seems bright for Syneos Health. 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? Since SYNH is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on SYNH for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SYNH. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

So while earnings quality is important, it's equally important to consider the risks facing Syneos Health at this point in time. While conducting our analysis, we found that Syneos Health has 1 warning sign and it would be unwise to ignore it.

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

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.