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While Utz Brands, Inc. (NYSE:UTZ) might not have the largest market cap around , it saw a decent share price growth of 19% on the NYSE 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 examine Utz Brands’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for Utz Brands
What's The Opportunity In Utz Brands?
Good news, investors! Utz Brands is still a bargain right now. According to our valuation, the intrinsic value for the stock is $22.47, but it is currently trading at US$17.22 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Utz Brands’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Utz Brands?
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. However, with a relatively muted revenue growth of 6.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Utz Brands, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since UTZ 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 UTZ 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 UTZ. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.