Why Bio-Rad Laboratories, Inc. (NYSE:BIO) Could Be Worth Watching

Bio-Rad Laboratories, Inc. (NYSE:BIO) saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. 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 Bio-Rad Laboratories’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Bio-Rad Laboratories

What's The Opportunity In Bio-Rad Laboratories?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.12% above my intrinsic value, which means if you buy Bio-Rad Laboratories today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $450.74, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Bio-Rad Laboratories’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Bio-Rad Laboratories generate?

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. Bio-Rad 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? BIO’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on BIO, 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.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. While conducting our analysis, we found that Bio-Rad Laboratories has 1 warning sign and it would be unwise to ignore this.

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.