Should You Think About Buying Entegris, Inc. (NASDAQ:ENTG) Now?

Let's talk about the popular Entegris, Inc. (NASDAQ:ENTG). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Entegris’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Entegris

Is Entegris Still Cheap?

According to our valuation model, the stock is currently overvalued by about 26%, trading at US$116 compared to our intrinsic value of $92.21. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since Entegris’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Entegris 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. Entegris' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in ENTG’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe ENTG should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on ENTG for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for ENTG, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Entegris, you'd also look into what risks it is currently facing. To that end, you should learn about the 2 warning signs we've spotted with Entegris (including 1 which is significant).

If you are no longer interested in Entegris, 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.