Is it time to consider buying National Vision Holdings, Inc. (NASDAQ: EYE)?

Although National Vision Holdings, Inc. (NASDAQ:EYE) may not have the largest market capitalization in the market, its stock price has seen significant movements over the past few months on the NASDAQGS, hitting record highs from US$23.81 and falling to lows of US$14.76. Certain stock price movements can give investors a better opportunity to enter the stock and potentially buy at a lower price. One question that needs to be answered is whether National Vision Holdings’ current price of US$15.00 reflects the true value of the small cap? Or is it currently undervalued, giving us an opportunity to buy? Let’s take a look at National Vision Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for National Vision Holdings

What is National Vision Holdings worth?

According to our valuation model, National Vision Holdings appears to be reasonably priced, approximately 1.85% above our intrinsic value, meaning if you buy National Vision Holdings today, you’ll be paying a relatively fair price . And if you think the stock is actually worth $14.73, then there’s not really any room for the stock price to rise beyond what it’s currently trading at. Is there another opportunity to buy low in the future? Since National Vision Holdings’ stock price is quite volatile, we could potentially see it fall (or rise) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator of how the stock is doing relative to the rest of the market.

Can we expect growth from National Vision Holdings?

Future outlook is an important aspect when considering buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a strong outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, in the case of National Vision Holdings, negative revenue growth of -5.8% is expected over the next two years, which will not help strengthen its investment thesis. It appears that the risk of future uncertainty is high, at least in the short term.

What this means for you

Are you a shareholder? EYE currently appears reasonably priced, but given the uncertainty of negative returns in the future, this could be a good time to de-risk your portfolio. Is your current exposure to the stock optimal for your overall portfolio? And is the opportunity cost of holding a stock with a negative outlook too high? Before making a decision about the stock, check if its fundamentals have changed.

Are you a potential investor? If you’ve been watching EYE for a while, now may not be the most advantageous time to buy, given that the stock is trading around its fair value. The stock appears to be trading at fair value, meaning there is less upside to a mispricing. Additionally, negative growth prospects increase the risk of holding the stock. However, there are also other important factors that we haven’t considered today, which can help solidify your opinion on EYE if the price fluctuates below its true value.

It can be very useful to consider what the analysts are expecting for National Vision Holdings based on their most recent forecasts. Fortunately, you can view analyst forecasts by clicking here.

If you are no longer interested in National Vision Holdings, you can use our free platform to view our list of over 50 other stocks with high growth potential.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.