Should You Investigate Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) At US$98.17?

While Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGM. The company is inching closer to its yearly highs following the recent share price climb. 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, what if the stock is still a bargain? Let’s take a look at Ollie's Bargain Outlet Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Ollie's Bargain Outlet Holdings

Is Ollie's Bargain Outlet Holdings Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 2.63% above our intrinsic value, which means if you buy Ollie's Bargain Outlet Holdings today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $95.65, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Ollie's Bargain Outlet Holdings’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Ollie's Bargain Outlet Holdings?

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 Ollie's Bargain Outlet Holdings, it is expected to deliver a relatively unexciting earnings growth of 5.8%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Ollie's Bargain Outlet Holdings, at least in the near term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in OLLI’s future 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 OLLI, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Ollie's Bargain Outlet Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.