Is It Too Late To Consider Buying The Hackett Group, Inc. (NASDAQ:HCKT)?

While The Hackett Group, Inc. (NASDAQ:HCKT) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$23.27 at one point, and dropping to the lows of US$18.52. 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 Hackett Group's current trading price of US$18.52 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 Hackett Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Hackett Group

What Is Hackett Group Worth?

Good news, investors! Hackett Group is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $28.79, but it is currently trading at US$18.52 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Hackett Group’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from Hackett Group?

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. However, with a negative profit growth of -2.9% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Hackett Group. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although HCKT is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to HCKT, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on HCKT for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you want to dive deeper into Hackett Group, you'd also look into what risks it is currently facing. Be aware that Hackett Group is showing 2 warning signs in our investment analysis and 1 of those is significant...

If you are no longer interested in Hackett Group, 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.