Datalogic S.p.A. (BIT: DAL), which operates in the electronic business and is based in Italy, has led the BIT winners in the past few weeks with a relatively strong price increase. As a stock with high analyst coverage, you can assume that the most recent changes in the company’s outlook are already priced into the stock. But what if the stock is still a bargain? Today I’m going to analyze the latest data on Datalogic’s prospects and reviews to see if the opportunity still exists.
Check out our latest analysis for Datalogic
What is Datalogic worth?
Datalogic currently appears to be overvalued by 46% based on my discounted cash flow valuation. The stock currently has a market price of € 16.87 compared to my intrinsic value of € 11.53. Not the best news for investors who want to buy! But will there be another way to buy cheaply in the future? Since Datalogic’s stock price is very volatile, this could mean that it will go down (or even go up) in the future and offer us another investment opportunity. This is based on the high beta, which is a good indicator of how much the stock is moving relative to the rest of the market.
What kind of growth will Datalogic generate?
Investors looking to grow their portfolio may want to review a company’s prospects before buying its stocks. Buying a great company with a solid outlook at a great price is always a good investment. So let’s also look at the company’s future expectations. However, with earnings growth of 3.7% being relatively modest over the next few years, growth does not appear to be a key driver for a purchase decision for Datalogic, at least in the short term.
What this means for you:
Are you a shareholder? DAL’s future growth appears to have been included in the current stock price, with stock trading above fair value. At this current price, shareholders may be asking another question – should I sell? If you think DAL should trade below its current price, it may be profitable to sell high and buy again if its price drops towards its real value. Before you make this decision, you should take a look at whether the basics have changed.
Are you a potential investor? If you’ve been watching DAL for a while, this may not be the best time to go into the stock. The price has surpassed its true value, which means there is no benefit in mispricing. However, given the positive outlook, it is worth taking a closer look at other factors to take advantage of the next price drop.
The price is just the tip of the iceberg. Before you choose Datalogic, find out more about the basics. Everything you need to know about Datalogic can be found in the latest infographic research report. If you are no longer interested in Datalogic, you can view my list of over 50 other stocks with high growth potential on our free platform.
If you discover an error that justifies a correction, please contact the editorial team at firstname.lastname@example.org. This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.
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