Stock Analysis

When Should You Buy Varonis Systems, Inc. (NASDAQ:VRNS)?

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NasdaqGS:VRNS
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Varonis Systems, Inc. (NASDAQ:VRNS), might not be a large cap stock, but it saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. 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. But what if there is still an opportunity to buy? Let’s take a look at Varonis Systems’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Varonis Systems

What Is Varonis Systems Worth?

Good news, investors! Varonis Systems is still a bargain right now. According to my valuation, the intrinsic value for the stock is $32.01, but it is currently trading at US$21.96 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Varonis Systems’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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 kind of growth will Varonis Systems generate?

earnings-and-revenue-growth
NasdaqGS:VRNS Earnings and Revenue Growth December 2nd 2022

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. With profit expected to grow by 23% over the next couple of years, the future seems bright for Varonis Systems. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since VRNS is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on VRNS for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy VRNS. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, we've discovered 3 warning signs that you should run your eye over to get a better picture of Varonis Systems.

If you are no longer interested in Varonis Systems, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

What are the risks and opportunities for Varonis Systems?

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally.

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Rewards

  • Revenue is forecast to grow 10.54% per year

Risks

  • Currently unprofitable and not forecast to become profitable over the next 3 years

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