Is It Too Late To Consider Buying Leslie's, Inc. (NASDAQ:LESL)?

Leslie's, Inc. (NASDAQ:LESL), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Leslie's’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Leslie's

Is Leslie's Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 18.14% above our intrinsic value, which means if you buy Leslie's today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $5.55, there’s only an insignificant downside when the price falls to its real value. What's more, Leslie's’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Leslie's look like?

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 more than double over the next couple of years, the future seems bright for Leslie's. 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? LESL’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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on LESL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Leslie's, you'd also look into what risks it is currently facing. Be aware that Leslie's is showing 5 warning signs in our investment analysis and 2 of those are concerning...

If you are no longer interested in Leslie's, 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.