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When Should You Buy Vitamin Shoppe Inc (NYSE:VSI)?

Vitamin Shoppe Inc (NYSE:VSI), a specialty retail company based in United States, saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Vitamin Shoppe’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Vitamin Shoppe

What is Vitamin Shoppe worth?

Good news, investors! Vitamin Shoppe is still a bargain right now. According to my valuation, the intrinsic value for the stock is $21.93, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Vitamin Shoppe’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What does the future of Vitamin Shoppe look like?

NYSE:VSI Future Profit Jun 8th 18
NYSE:VSI Future Profit Jun 8th 18

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. However, with an expected decline of -1.57% in revenues over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Vitamin Shoppe. This certainty tips the risk-return scale towards higher risk.

What this means for you:

Are you a shareholder? Although VSI is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to VSI, or whether diversifying into another stock may be a better move for your total risk and return.

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Are you a potential investor? If you’ve been keeping tabs on VSI for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

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


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.