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OptimizeRx Corporation (NASDAQ:OPRX), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQCM, rising to highs of US$30.34 and falling to the lows of US$13.74. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether OptimizeRx's current trading price of US$13.74 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at OptimizeRx’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for OptimizeRx
What's The Opportunity In OptimizeRx?
OptimizeRx appears to be overvalued by 38% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$13.74 on the market compared to my intrinsic value of $9.99. This means that the buying opportunity has probably disappeared for now. In addition to this, it seems like OptimizeRx’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of OptimizeRx look like?
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. OptimizeRx's earnings over the next few years are expected to increase by 28%, 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? OPRX’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe OPRX should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on OPRX for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for OPRX, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.