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USANA Health Sciences, Inc. (NYSE:USNA), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$36.70 at one point, and dropping to the lows of US$27.31. 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 USANA Health Sciences' current trading price of US$27.31 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 USANA Health Sciences’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's The Opportunity In USANA Health Sciences?
Good news, investors! USANA Health Sciences is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that USANA Health Sciences’s ratio of 12.28x is below its peer average of 28.1x, which indicates the stock is trading at a lower price compared to the Personal Products industry. What’s more interesting is that, USANA Health Sciences’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move closer to its industry peers, 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.
Check out our latest analysis for USANA Health Sciences
What does the future of USANA Health Sciences 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. With profit expected to grow by a double-digit 20% over the next couple of years, the outlook is positive for USANA Health Sciences. 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 USNA is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With an optimistic profit 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 price multiple.