Teleflex Incorporated (NYSE:TFX), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$267 at one point, and dropping to the lows of US$207. 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 Teleflex’s current trading price of US$207 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Teleflex’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Teleflex
Great news for investors – Teleflex is still trading at a fairly cheap price according to my price multiple model, where I compare the company’s price-to-earnings ratio to the industry average. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 19.08x is currently well-below the industry average of 32.21x, meaning that it is trading at a cheaper price relative to its peers. Although, there may be another chance to buy again in the future. This is because Teleflex’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
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. However, with a relatively muted profit growth of 5.3% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Teleflex, at least in the short term.
Are you a shareholder? Even though growth is relatively muted, since TFX is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current price multiple.
Are you a potential investor? If you’ve been keeping an eye on TFX for a while, now might be the time to enter the stock. Its future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TFX. 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 assessment.
Since timing is quite important when it comes to individual stock picking, it’s worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.
If you are no longer interested in Teleflex, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
Related Quotes
Ironwood Pharmaceuticals (NASDAQ:IRWD) has had a rough month with its share price down 11%. However, stock prices are…
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story…
A look at the shareholders of SEACOR Marine Holdings Inc. ( NYSE:SMHI ) can tell us which group is most powerful. We…
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to…
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Old Dominion Freight…
Every investor in Global Blockchain Acquisition Corp. ( NASDAQ:GBBK ) should be aware of the most powerful shareholder…
Travel + Leisure Co. ( NYSE:TNL ), might not be a large cap stock, but it received a lot of attention from a…
MILWAUKEE (AP) — Vice President Kamala Harris met with college students and Latino leaders in Milwaukee on Thursday, a visit […] The post Kamala Harris talks abortion, appeals to voters in Milwaukee appeared first on TheGrio.
The rodent that reportedly caused the power outage "infiltrated a piece of equipment" in the community on Friday.
The nature of investing is that you win some, and you lose some. And there's no doubt that Priority Technology…
Shares of transportation companies are falling twice as fast as the hard-hit U.S. stock market, reflecting investors’ expectations of a recession.
These companies face near-term risk coming from a slowing economy, but they are all transforming their businesses for long-term growth.
Rodgers vs. Brady. Do we really need to say more?
(Bloomberg) — John Paulson became a billionaire after his hedge fund effectively shorted more than $25 billion of mortgage securities at the dawn of the global financial crisis. Most Read from BloombergBank of England Says Paper Banknotes Only Good for One More WeekJohn Paulson on Frothy US Housing Market: This Time Is DifferentThe Great Bond Bubble Is ‘Poof, Gone’ in Worst Year Since 1949Pound Plunges to Record Low as Kwarteng Signals More Tax Cuts‘Read Putin More Often and Carefully,’ Lavrov
The first half of the year saw the benchmark S&P 500 (SNPINDEX: ^GSPC) produce its worst return since 1970. With the S&P 500 and Nasdaq respectively declining 24% and 34%, respectively, at their peaks, both indexes have firmly entered bear market territory. Given the heightened volatility and uncertainty that accompanies bear markets, it has a lot of investors wondering where the market will bottom.
Today, with the stock market in meltdown mode, it’s natural to look back at other times of financial woe. The market environment in the 1970s can be particularly instructive.
Dividends can be used to create passive income in an investment portfolio or grow wealth over the long term through reinvestment. Knowing how to live off dividends may be central to your retirement planning strategy if you want to avoid … Continue reading → The post How Much Do You Need to Live Off Dividends? appeared first on SmartAsset Blog.
The bear market is poised for a new leg down as selling intensifies. Apple, Eli Lilly are stocks showing relative strength.
AT&T (NYSE: T) and IBM (NYSE: IBM) both underwent dramatic transformations over the past year. AT&T divested DirecTV, merged WarnerMedia with Discovery to create Warner Bros. Discovery (NASDAQ: WBD) , and sold many of its non-core assets to prioritize the growth of its core telecom business.
Stocks have taken a bumpy ride this year. The S&P 500 was in a free fall for the first six months of 2022, tumbling about 24% from peak to trough on fears that rising interest rates to combat inflation could cause a recession. With the market growing fearful again, our contributors think that some stocks are starting to look like great bargains.