While National Beverage Corp. (

NASDAQ:FIZZ

) might not be the most widely known stock at the moment,list of bad priests it received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. 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, what if the stock is still a bargain? Today I will analyse the most recent data on National Beverage’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for National Beverage

What is National Beverage worth?

According to my valuation model, National Beverage seems to be fairly priced at around 6.2% below my intrinsic value, which means if you buy National Beverage today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $83.50, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that National Beverage’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will National Beverage generate?

earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. National Beverage's earnings over the next few years are expected to increase by 25%, 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 already priced in FIZZ’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor?

If you’ve been keeping tabs on FIZZ, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Story continues

Diving deeper into the forecasts for National Beverage mentioned earlier will help you understand how analysts view the stock going forward. At Simply Wall St, we have the analysts estimates which

you can view by clicking here

.

If you are no longer interested in National Beverage, you can use our free platform to see our list of over

50 other stocks with a high growth potential.

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. 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

[email protected]

.

View comments