What Does Establishment Labs Holdings Inc.'s (NASDAQ:ESTA) Share Price Indicate?

editorial-team@simplywallst.com (Simply Wall St)

July 1, 2024 at 9:20 a.m.·3 min read

Establishment Labs Holdings Inc. (NASDAQ:ESTA), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$59.86 at one point, and dropping to the lows of US$41.46. 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 Establishment Labs Holdings' current trading price of US$45.44 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 Establishment Labs Holdings’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 Establishment Labs Holdings

What's The Opportunity In Establishment Labs Holdings?

According to our valuation model, the stock is currently overvalued by about 30%, trading at US$45.44 compared to our intrinsic value of $34.96. This means that the opportunity to buy Establishment Labs Holdings at a good price has disappeared! But, is there another opportunity to buy low in the future? Since Establishment Labs Holdings’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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 Establishment Labs Holdings?

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. Establishment Labs Holdings' earnings over the next few years are expected to increase by 81%, 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? ESTA’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 ESTA 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 ESTA 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 optimistic prospect is encouraging for ESTA, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

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 - Establishment Labs Holdings has 2 warning signs we think you should be aware of.

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

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

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

Bloomberg
Ballmer Is Richer Than Gates, a First for Microsoft Billionaires
(Bloomberg) -- Steve Ballmer passed Bill Gates on Monday to become the sixth-richest person in the world, the first time the former chief executive officer of Microsoft Corp. has been wealthier than the company’s co-founder. Most Read from BloombergChina Can End Russia’s War in Ukraine With One Phone Call, Finland SaysUS Allies Say China Is Developing Attack Drones for RussiaDemocrats Weigh Mid-July Vote to Formally Tap Biden as NomineeHurricane Beryl Roars Toward Jamaica on Destructive PathBide
Business Insider
Cathie Wood's Ark Invest has destroyed $14 billion in wealth over the past decade, Morningstar says
"These funds managed to lose value for shareholders even during a generally bullish market," Morningstar analyst Amy Arnott said.
Simply Wall St.
Exploring Three TSX Stocks With Intrinsic Value Discounts Ranging From 25.4% To 41.4%
As the Canadian stock market experiences a robust first half of 2024, with solid gains and a positive economic outlook, investors are keenly observing how different sectors are performing. In this environment, identifying stocks that appear undervalued relative to their intrinsic value could be particularly compelling, especially in a market that has demonstrated strong historical returns following such promising starts.
The Canadian Press
Whitecap sells stake in infrastructure assets, signs partnership with Pembina
CALGARY — Whitecap Resources Inc. has signed a deal to sell a 50 per cent stake in its Kaybob complex natural gas processing facility to Pembina Gas Infrastructure for $420 million.
Simply Wall St.
Top Three Dividend Stocks For July 2024
As global markets navigate through a period of subtle shifts and key economic updates, investors are closely monitoring the landscape for opportunities that align with both growth and stability. In this context, dividend stocks often come into focus as they can offer potential income alongside capital appreciation, making them appealing during times of market uncertainty and economic recalibration.
Barrons.com
Nvidia Stock Breaks Losing Streak. What’s Worrying the Market.
The launch of Nvidia's Blackwell chips will test the ability of its suppliers and customers to deal with the infrastructure challenges associated with even more powerful chips.
Business Insider
Russia's war-driven economy is so hot that the World Bank upgraded it to a 'high-income country'
Russia's trade rebounded by nearly 7% last year, while activities in the financial sector and construction grew by 6.6% and 3.6% respectively.
GOBankingRates
5 Best Index Funds To Own for Life, According To TikToker Humphrey Yang
Financial guru and TikToker Humphrey Yang recently shared in a YouTube video a few index funds you can invest in which will help grow your wealth over time.
The Motley Fool
2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run
TFSA investors can consider holding quality growth stocks such as Propel Holdings right now and derive outsized gains in the next five years. The post 2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run appeared first on The Motley Fool Canada.
Associated Press
Struggling with falling demand for farm equipment, Deere & Co. announces nearly 600 layoffs
Deere & Co. is laying off nearly 600 workers as the farm equipment manufacturer deals with declining demand. Deere confirmed Monday that the production positions being cut are concentrated at two factories in Iowa and one at its home base in Moline, Illinois, where 280 employees will be laid off effective Aug. 30. A combined 310 workers will be let go at the Iowa locations.
Reuters
Canadian dollar gains seen capped by central bank divergence: Reuters poll
The Canadian dollar is set to strengthen over the coming year but its gains will be limited after the Bank of Canada began cutting interest rates ahead of the Federal Reserve and as the U.S. election fans economic uncertainty, a Reuters poll found. The median forecast of more than 40 foreign exchange analysts in the June 28-July 3 poll showed the loonie will be little changed at 1.3700 a U.S. dollar, or 72.99 U.S. cents, in three months, compared to 1.3667 in last month's poll. "We expect the BoC to cut in July, whereas the bands of uncertainty around the U.S. inflation and Fed outlook are wider, with a risk of the Fed holding rates high for longer," said Jayati Bharadwaj, a global FX strategist at TD Securities.
GOBankingRates
I’m a Financial Advisor: Here’s How Often You Should Check Your Retirement Account Balance
The best investor is one who's informed, but obsessing over your retirement fund's performance can stress you out and trigger the kind of emotional and counterproductive decision-making that can...
Yahoo Finance Video
Nvidia is the best way to play AI for the 'next 10 years'
Nvidia (NVDA) shares are falling back today following the chipmaker's recent market high. Rosenblatt Securities senior research analyst Hans Mosesmann joins Market Domination to explain why he is not worried about the stock's bumpy previous weeks. Mosesmann has issued the highest price target for Nvidia on Wall Street. Mosesmann has a long-term view, explaining that the sale pressure is negligible when one considers that Nvidia is going to be the "best way to play AI for the next 10 years." He adds that Nvidia is not just a semiconductor company anymore but a platform that is "all things AI." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This article was written by Gabriel Roy
Bloomberg
Tesla Beats Estimates With Less-Drastic Drop in EV Sales
(Bloomberg) -- Tesla Inc.’s second consecutive drop in quarterly deliveries wasn’t as steep as analysts were predicting, sending the EV maker’s shares soaring as much as 10%.Most Read from BloombergDemocrats Weigh Mid-July Vote to Formally Tap Biden as NomineePowerful Storm Beryl Aims at Jamaica After Grenada StrikeUS Allies Allege China Is Developing Attack Drones for RussiaS&P 500 Closes Above 5,500 in Record-Breaking Run: Markets WrapBiden Plummets in Leaked Democratic Polling Memo, Puck Says
Bloomberg
Hindenburg Made Just $4 Million From $153 Billion Adani Rout
(Bloomberg) -- It was one of the most impactful short-seller reports ever: Hindenburg Research’s 2023 broadside against the Adani Group erased as much as $153 billion of market value.Most Read from BloombergDemocrats Weigh Mid-July Vote to Formally Tap Biden as NomineePowerful Hurricane Beryl Aims at Jamaica After Grenada StrikeTrump Immunity Ruling Means Any Trial Before Election Unlikely‘Upflation’ Is the New Retail Trend Driving Up Prices for US ConsumersBonds Get Respite Amid Powell’s Disinf
The Canadian Press
S&P/TSX composite rises Tuesday on energy strength, U.S. markets also move higher
TORONTO — Canada's main stock index rose Tuesday near the end of the trading day, erasing earlier losses as energy and base metals helped offset weakness in telecom, while U.S. stock markets also climbed higher.
Bloomberg
Constellation Executive Sold $75 Million in Stock Ahead of Capital Gains Change
(Bloomberg) -- Canadian technology firm Constellation Software Inc. saw a surge in insider selling in June, driven by a senior executive’s move to unload C$102.6 million ($75 million) of shares ahead of a hike to the nation’s capital-gains tax.Most Read from BloombergDemocrats Weigh Mid-July Vote to Formally Tap Biden as NomineeUS Allies Allege China Is Developing Attack Drones for RussiaChina Can End Russia’s War in Ukraine With One Phone Call, Finland SaysS&P 500 Closes Above 5,500 in Record-B
Barrons.com
Why It Could Be a Cruel Summer for the Stock Market
THE TRADER The stock market has been hitting new highs, but most stocks are struggling. Even news that would usually move them isn’t doing the trick, a sign that equities won’t be an exciting place to invest in a while.
Simply Wall St.
TSX Dividend Stocks To Watch In July 2024
As the first half of 2024 concludes, the Canadian market has shown resilience with a solid performance, particularly benefiting from sectors like utilities and gold while maintaining lower volatility. This positive trajectory, coupled with favorable economic indicators and potential central bank rate cuts, sets an optimistic backdrop for investors. In this context, dividend stocks remain appealing due to their potential for steady income and relative stability amidst fluctuating markets.
Reuters
Polestar posts loss, plans steps to offset tariffs on China-made EVs
STOCKHOLM (Reuters) -Electric vehicle (EV) maker Polestar said it will have to take steps to offset hefty EU and U.S. import tariffs on its Chinese-made electric cars as it posted a first-quarter operating loss on Tuesday. The Swedish company, controlled by China's Geely, makes all its EVs in China, but its new model, the Polestar 3, will be made in the United States from the end of this summer and its Polestar 4 in South Korea from the second half of next year. Until then, it will incur provisional tariffs of 20% for the cars it brings into the European Union under a proposal by the European Commission and more than 100% for the United States.

S&P/TSX

S&P 500

DOW

CAD/USD

CRUDE OIL

Bitcoin CAD

CMC Crypto 200

GOLD FUTURES

RUSSELL 2000

10-Yr Bond

NASDAQ

VOLATILITY

FTSE

NIKKEI 225

CAD/EUR

STOCKS TREAD WATER AFTER S&P 500'S RECORD CLOSE

What's The Opportunity In Establishment Labs Holdings?

Can we expect growth from Establishment Labs Holdings?

What This Means For You

Latest Stories