Stock Analysis

Is Now An Opportune Moment To Examine 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS)?

NasdaqGS:FLWS
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While 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$11.09 at one point, and dropping to the lows of US$8.64. 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 1-800-FLOWERS.COM's current trading price of US$9.31 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at 1-800-FLOWERS.COM’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for 1-800-FLOWERS.COM

What's The Opportunity In 1-800-FLOWERS.COM?

Great news for investors – 1-800-FLOWERS.COM is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $14.10, but it is currently trading at US$9.31 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 1-800-FLOWERS.COM’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.

Can we expect growth from 1-800-FLOWERS.COM?

earnings-and-revenue-growth
NasdaqGS:FLWS Earnings and Revenue Growth May 24th 2024

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. Though in the case of 1-800-FLOWERS.COM, it is expected to deliver a relatively unexciting top-line growth of 1.5% 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 FLWS is currently undervalued, it may be a great time to increase 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 FLWS 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 FLWS. 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 buy.

Diving deeper into the forecasts for 1-800-FLOWERS.COM mentioned earlier will help you understand how analysts view the stock going forward. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

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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.