Yahoo Finance Is Now The Time To Look At Buying Luminex Corporation (NASDAQ:LMNX)?
Luminex Corporation (NASDAQ:LMNX), which is in the life sciences business, and is based in United States, received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. 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, could the stock still be trading at a relatively cheap price? Let’s take a look at Luminex’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Luminex
Is Luminex still cheap?
Luminex appears to be overvalued by 44% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$23.12 on the market compared to my intrinsic value of $16.10. This means that the opportunity to buy Luminex at a good price has disappeared! In addition to this, it seems like Luminex’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, 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 Luminex?
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. In the upcoming year, Luminex’s earnings are expected to increase by 92%, 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? It seems like the market has well and truly priced in LMNX’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe LMNX 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 tabs on LMNX for some time, 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 LMNX, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Luminex. You can find everything you need to know about Luminex in the latest infographic research report. If you are no longer interested in Luminex, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
