At US$29.14, Is Integra LifeSciences Holdings Corporation (NASDAQ:IART) Worth Looking At Closely?

Simply Wall St · 07/01 10:04

Integra LifeSciences Holdings Corporation (NASDAQ:IART), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. 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. However, what if the stock is still a bargain? Let’s take a look at Integra LifeSciences Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Integra LifeSciences Holdings

Is Integra LifeSciences Holdings Still Cheap?

Good news, investors! Integra LifeSciences Holdings is still a bargain right now. According to our valuation, the intrinsic value for the stock is $40.90, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Integra LifeSciences Holdings’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 Integra LifeSciences Holdings generate?

earnings-and-revenue-growth
NasdaqGS:IART Earnings and Revenue Growth July 1st 2024

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. Integra LifeSciences Holdings' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since IART 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on IART 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 IART. 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've found that Integra LifeSciences Holdings has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

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