Is There Now An Opportunity In The Hain Celestial Group, Inc. (NASDAQ:HAIN)?

The Hain Celestial Group, Inc. (NASDAQ:HAIN), which is in the food business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Hain Celestial Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Hain Celestial Group

What's the opportunity in Hain Celestial Group?

Great news for investors – Hain Celestial Group is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $36.01, but it is currently trading at US$26.54 on the share market, meaning that there is still an opportunity to buy now. However, given that Hain Celestial Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Hain Celestial Group look like?

NasdaqGS:HAIN Past and Future Earnings, February 25th 2020
NasdaqGS:HAIN Past and Future Earnings, February 25th 2020

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. With profit expected to more than double over the next couple of years, the future seems bright for Hain Celestial Group. 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 HAIN 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on HAIN for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HAIN. 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 buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Hain Celestial Group. You can find everything you need to know about Hain Celestial Group in the latest infographic research report. If you are no longer interested in Hain Celestial Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.