When Should You Buy Littelfuse, Inc. (NASDAQ:LFUS)?

Littelfuse, Inc. (NASDAQ:LFUS), might not be a large cap stock, but it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. 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 Littelfuse’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for Littelfuse

What Is Littelfuse Worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.1% below my intrinsic value, which means if you buy Littelfuse today, you’d be paying a fair price for it.

And if you believe the company’s true value is £271.07, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Littelfuse’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 Littelfuse?

earnings-and-revenue-growthNasdaqGS:LFUS Earnings and Revenue Growth March 26th 2023

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. Littelfuse’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead.

This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in LFUS’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. 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 LFUS, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Littelfuse from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts. If you are no longer interested in Littelfuse, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Valuation is complex, but we’re helping make it simple.

Find out whether Littelfuse is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article?

Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.

Tags:

bet365 listed on couponmatrix.ukgant listed on couponmatrix.uklacoste listed on couponmatrix.ukpact-coffee listed on couponmatrix.ukrosetta-stone listed on couponmatrix.ukultimate-outdoors listed on couponmatrix.uk
bet365 listed on couponmatrix.ukThink you’ve got a bit of a lucky streak? Now’s your time to put it to the test with bet365, one of the leading online gambling sites in the world. Join the other 22 million users around the globe on bet365 to get your gaming fix, using this bet365 bonus code to up your bet credits across hundreds of games. From horse racing to the Six Nations, you’ll find hundreds of stakes worth betting on to make your millions.
gant listed on couponmatrix.ukClassic American style can find its way into your wardrobe, with designer apparel available from GANT. From stylish swimwear to swanky socks, cool cords to silky scarves, there’s something for everyone, so grab a GANT discount code and start saving today. Kit yourself out with a great range of designer American sportswear and cutting-edge fashion, courtesy of GANT, so start shopping today and get yourself a stylish new wardrobe.
lacoste listed on couponmatrix.ukEveryone knows Lacoste for their famous crocodile logo polo shirts, but there's much more to the company than that. Started in 1933 by French tennis legend Rene Lacoste, known as “The Alligator” for his tenacious style of play, they pioneered what is now known as the preppy look, offering high end clothes for the tennis court, golf course and for wearing out too. So, channel your inner preppy and check out the range of timeless, elegant fashion and with the Lacoste promo code you’ll be able to pick classic French style for the best price.
pact-coffee listed on couponmatrix.ukPick yourself up every morning with a cup of Pact Coffee, the coffee-loving enthusiasts who ship only the best beans from farmers around the world directly to your mailbox. From coffee pods to full beans, expect a Pact Coffee voucher to save on every variant under the sun – so you can enjoy your cuppa exactly how you like it for less. Pact Coffee offers subscription-based monthly deliveries as well as bags for one-off purchases, so you can commit as much or as little as you like to your coffee craving.
rosetta-stone listed on couponmatrix.ukThe only truly twenty first century language tuition provider in the world, Rosetta Stone have made it incredibly quick and painless for millions to master foreign languages. Their approach uses a wide array of digital aids including speech recognition software and interactive games, and it's all very affordable thanks to the Rosetta Stone promo code. Prior to their approach the only way to pick up a language was to live in the country where it's spoken - but Rosetta Stone have turned digital technology to their advantage without resorting to gimmickry, and millions of satisfied customers are enjoying the benefits.
ultimate-outdoors listed on couponmatrix.ukCalling all backpackers and adventurers - Ultimate Outdoors is here to kit you out and prep you fully for your next exploit, whether that be on land, sea or rockface! It’s vital you’re in the correct gear to make sure you’re as comfortable as possible and ready for anything, and with an Ultimate Outdoors discount code you can pick up the things you need at little cost to your bank balance.