DENTSPLY SIRONA Inc. (NASDAQ:XRAY), is not the largest company out there, but it saw a decent share price growth of 13% on the NASDAQGS over the last few months. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on DENTSPLY SIRONA’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for DENTSPLY SIRONA
Good news, investors! DENTSPLY SIRONA is still a bargain right now. According to our valuation, the intrinsic value for the stock is $28.55, 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, DENTSPLY SIRONA’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, 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.
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. Though in the case of DENTSPLY SIRONA, it is expected to deliver a relatively unexciting top-line growth of 3.5% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
Are you a shareholder? Even though growth is relatively muted, since XRAY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on XRAY for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy XRAY. 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 buy.
If you'd like to know more about DENTSPLY SIRONA as a business, it's important to be aware of any risks it's facing. For example - DENTSPLY SIRONA has 1 warning sign we think you should be aware of.
If you are no longer interested in DENTSPLY SIRONA, 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.
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