At US$325, Is Bio-Rad Laboratories, Inc. (NYSE:BIO) Worth Looking At Closely?

Bio-Rad Laboratories, Inc. (NYSE:BIO), might not be a large cap stock, but it saw a significant share price rise of 21% in the past couple of months on the NYSE. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Bio-Rad Laboratories’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Bio-Rad Laboratories

What's The Opportunity In Bio-Rad Laboratories?

Good news, investors! Bio-Rad Laboratories is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $536.56, but it is currently trading at US$325 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Bio-Rad Laboratories’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What does the future of Bio-Rad Laboratories look like?

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. Though in the case of Bio-Rad Laboratories, it is expected to deliver a relatively unexciting top-line growth of 5.5% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since BIO is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

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

So while earnings quality is important, it's equally important to consider the risks facing Bio-Rad Laboratories at this point in time. In terms of investment risks, we've identified 1 warning sign with Bio-Rad Laboratories, and understanding it should be part of your investment process.

If you are no longer interested in Bio-Rad 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.