Is Now An Opportune Moment To Examine Stratasys Ltd. (NASDAQ:SSYS)?

September 03, 2022
  •  Updated
October 31, 2022
NasdaqGS:SSYS
Source: Shutterstock

While Stratasys Ltd. (NASDAQ:SSYS) 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$21.00 at one point, and dropping to the lows of US$16.20. 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 Stratasys' current trading price of US$16.81 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 Stratasys’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Stratasys

What's The Opportunity In Stratasys?

Good news, investors! Stratasys is still a bargain right now. According to my valuation, the intrinsic value for the stock is $26.44, but it is currently trading at US$16.81 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Stratasys’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.

Can we expect growth from Stratasys?

earnings-and-revenue-growth
NasdaqGS:SSYS Earnings and Revenue Growth September 3rd 2022

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 45% over the next couple of years, the future seems bright for Stratasys. 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 SSYS is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 capital structure to consider, which could explain the current undervaluation.

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

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 2 warning signs for Stratasys and we think they deserve your attention.

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

Valuation is complex, but we're helping make it simple.

Find out whether Stratasys is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis