Why Revvity, Inc. (NYSE:RVTY) Could Be Worth Watching

Today we're going to take a look at the well-established Revvity, Inc. (NYSE:RVTY). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$128 at one point, and dropping to the lows of US$109. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Revvity's current trading price of US$109 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Revvity’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Revvity

What Is Revvity Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 9.2% below our intrinsic value, which means if you buy Revvity today, you’d be paying a fair price for it. And if you believe the company’s true value is $120.22, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Revvity’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 does the future of Revvity 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. With profit expected to grow by 92% over the next couple of years, the future seems bright for Revvity. 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? It seems like the market has already priced in RVTY’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. 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 RVTY, 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.

If you'd like to know more about Revvity as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for Revvity you should be aware of.

If you are no longer interested in Revvity, 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.