Yahoo Finance Is It Time To Buy Glu Mobile Inc (NASDAQ:GLUU)?
Glu Mobile Inc (NASDAQ:GLUU), a software company based in United States, led the NasdaqGS gainers with a relatively large price hike in the past couple of weeks. 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, what if the stock is still a bargain? Let’s take a look at Glu Mobile’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Glu Mobile
What’s the opportunity in Glu Mobile?
According to my valuation model, Glu Mobile seems to be fairly priced at around 20% above my intrinsic value, which means if you buy Glu Mobile today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $4.89, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Glu Mobile’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Glu Mobile?
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 69.93% over the next year, the near-term future seems bright for Glu Mobile. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? GLUU’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on GLUU, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Glu Mobile. You can find everything you need to know about Glu Mobile in the latest infographic research report. If you are no longer interested in Glu Mobile, 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.
