Today we’re going to take a look at the well-established ZoomInfo Technologies Inc. (NASDAQ:ZI). The company’s stock led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements to have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at ZoomInfo Technologies’ outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for ZoomInfo Technologies
What’s The Opportunity In ZoomInfo Technologies?
Great news for investors – ZoomInfo Technologies is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $34.03, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. ZoomInfo Technologies’ share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What does the future of ZoomInfo Technologies look like?
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 matters most, a more compelling investment theses would be high growth potential at a cheap price. ZoomInfo Technologies’ earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since ZI is currently undervalued, it could be a great time to increase your holdings in the stock. With an optimistic 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 ZI for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ZI. 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 investment decision.
So while earnings quality is important, it’s equally important to consider the risks facing ZoomInfo Technologies at this point in time. At Simply Wall St, we found 1 warning sign for ZoomInfo Technologies and we think they deserve your attention.
If you are no longer interested in ZoomInfo Technologies, you can use our free platform to view our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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