In This Article:
QuinStreet, Inc. (NASDAQ:QNST), might not be a large cap stock, but it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at QuinStreet’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for QuinStreet
What's The Opportunity In QuinStreet?
Great news for investors – QuinStreet is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $33.81, but it is currently trading at US$21.43 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, QuinStreet’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from QuinStreet?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With revenues expected to grow by 65% over the next couple of years, the future seems bright for QuinStreet. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since QNST is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 QNST for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy QNST. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.