What Is Allot Ltd.'s (NASDAQ:ALLT) Share Price Doing?

While Allot Ltd. (NASDAQ:ALLT) 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 NASDAQGS. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today we will analyse the most recent data on Allot’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Allot

Is Allot Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 4.47% above our intrinsic value, which means if you buy Allot today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $2.18, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Allot’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.

What does the future of Allot look like?

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. However, with a relatively muted revenue growth of 1.6% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for Allot.

What This Means For You

Are you a shareholder? It seems like the market has already priced in ALLT’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 financial strength of the company. 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 tabs on ALLT, 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'd like to know more about Allot as a business, it's important to be aware of any risks it's facing. When we did our research, we found 3 warning signs for Allot (1 shouldn't be ignored!) that we believe deserve your full attention.

If you are no longer interested in Allot, 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.

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