Health Insurance Innovations Inc (NASDAQ:HIIQ), a insurance company based in United States, saw a significant share price rise of over 20% in the past couple of months on the NasdaqGM. With many analysts covering the 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? Let’s take a look at HIIQ’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Health Insurance Innovations

Is HIIQ still cheap?

According to my valuation model, HIIQ seems to be fairly priced at around 11% below my intrinsic value, which means if you buy HIIQ today, you’d be paying a fair price for it. And if you believe HIIQ’s true value is $24.25, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, it seems like HIIQ’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because HIIQ’s stock is less volatile than the wider market given its low beta.

Can we expect growth from HIIQ?

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. In the upcoming year, HIIQ’s earnings are expected to increase by 97.98%, 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? HIIQ’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 HIIQ? 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 HIIQ, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for HIIQ, 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.