At US$14.37, Is Inseego Corp. (NASDAQ:INSG) Worth Looking At Closely?

Inseego Corp. (NASDAQ:INSG), is not the largest company out there, but it saw a significant share price rise of 125% 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. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Inseego’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What Is Inseego Worth?

According to our valuation model, the stock is currently overvalued by about 28%, trading at US$14.37 compared to our intrinsic value of $11.22. This means that the opportunity to buy Inseego at a good price has disappeared! But, is there another opportunity to buy low in the future? Given that Inseego’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

See our latest analysis for Inseego

What does the future of Inseego 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. In the upcoming year, Inseego's earnings are expected to increase by 79%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? INSG’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe INSG 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 an eye on INSG for a while, 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 INSG, 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 Inseego, you'd also look into what risks it is currently facing. To that end, you should learn about the 4 warning signs we've spotted with Inseego (including 1 which is potentially serious).

If you are no longer interested in Inseego, 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.