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Let's talk about the popular IQVIA Holdings Inc. (NYSE:IQV). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a large-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, what if the stock is still a bargain? Let’s examine IQVIA Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for IQVIA Holdings
Is IQVIA Holdings Still Cheap?
Great news for investors – IQVIA Holdings is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $326.72, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, IQVIA Holdings’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.
What kind of growth will IQVIA Holdings generate?
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 profit expected to grow by 40% over the next couple of years, the future seems bright for IQVIA Holdings. 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 IQV is currently undervalued, it may be a great time to increase 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on IQV for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IQV. 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.