Is Now The Time To Look At Buying CyberOptics Corporation (NASDAQ:CYBE)?

CyberOptics Corporation (NASDAQ:CYBE), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NASDAQGM over the last few months, increasing to US$46.58 at one point, and dropping to the lows of US$31.81. 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 CyberOptics' current trading price of US$31.81 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 CyberOptics’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for CyberOptics

What is CyberOptics worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.4% below my intrinsic value, which means if you buy CyberOptics today, you’d be paying a fair price for it. And if you believe that the stock is really worth $31.92, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because CyberOptics’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 CyberOptics?

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. 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. However, with a relatively muted profit growth of 5.4% expected over the next year, growth doesn’t seem like a key driver for a buy decision for CyberOptics, at least in the short term.

What this means for you:

Are you a shareholder? CYBE’s 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 CYBE, 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.

If you want to dive deeper into CyberOptics, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 1 warning sign for CyberOptics and you'll want to know about this.

If you are no longer interested in CyberOptics, 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.