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While 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) might not have the largest market cap around , it saw a decent share price growth of 11% 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 small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at 1-800-FLOWERS.COM’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Is 1-800-FLOWERS.COM Still Cheap?
Good news, investors! 1-800-FLOWERS.COM is still a bargain right now. According to our valuation, the intrinsic value for the stock is $9.07, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that 1-800-FLOWERS.COM’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 another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
See our latest analysis for 1-800-FLOWERS.COM
What does the future of 1-800-FLOWERS.COM look like?
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 1.2% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for 1-800-FLOWERS.COM.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since FLWS is currently undervalued, it may be a great time to increase your holdings in the stock. 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 FLWS for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FLWS. 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.