Syneos Health Inc (NASDAQ:SYNH), a life sciences company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. 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, could the stock still be trading at a relatively cheap price? Let’s examine Syneos Health’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for Syneos Health

What’s the opportunity in Syneos Health?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 8.50% below my intrinsic value, which means if you buy Syneos Health today, you’d be paying a fair price for it. And if you believe that the stock is really worth $39.13, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Syneos Health’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.

What does the future of Syneos Health 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. In Syneos Health’s case, its revenues over the next couple of years are expected to double, indicating an incredibly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? SYNH’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on SYNH, 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.