Is Now The Time To Look At Buying TransMedics Group, Inc …

TransMedics Group, Inc. (NASDAQ:TMDX), is not the largest company out there, but it led the NASDAQGM 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, could the stock still be trading at a relatively cheap price?

Let’s examine TransMedics Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for TransMedics Group

What Is TransMedics Group Worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 11.11% above my intrinsic value, which means if you buy TransMedics Group today, you’d be paying a relatively reasonable price for it.

And if you believe that the stock is really worth £65.27, then there isn’t really any room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that TransMedics Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on.

This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will TransMedics Group generate?

earnings-and-revenue-growth

earnings-and-revenue-growth

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. 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. TransMedics Group’s earnings over the next few years are expected to increase by 97%, indicating a highly optimistic future ahead.

This should lead to more 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 TMDX’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 conviction to buy should the price fluctuates below the true value?
Story continues
Are you a potential investor? If you’ve been keeping an eye on TMDX, now may not be the most optimal 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. If you’d like to know more about TransMedics Group as a business, it’s important to be aware of any risks it’s facing. Case in point: We’ve spotted 2 warning signs for TransMedics Group you should be aware of.

If you are no longer interested in TransMedics Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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.

Join A Paid User Research Session
You’ll receive a US£30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Tags:

boots-photo listed on couponmatrix.ukthe-book-depository listed on couponmatrix.ukdeep-sea-world listed on couponmatrix.ukdesigual listed on couponmatrix.ukmattress-online listed on couponmatrix.ukmr-porter listed on couponmatrix.uk
boots-photo listed on couponmatrix.ukThere are so many different ways in which you can relish your most treasured memories at Boots Photo. Whether you want a photo on your morning mug of coffee or the cushion you cradle when you first step through the door after work, a Boots Photo discount code can ensure you get a great price on the photos you love. You can even pick up a photo-embossed phone case to keep a precious moment immortalised on your handset, should you so desire!
the-book-depository listed on couponmatrix.ukBook Depository discount codes are great for book worms who want to stock up on their reading material whilst saving a pretty penny. They are the leading specialist online bookstore with over 11 million titles with free delivery to over 100 countries. Get searching for your particular interest or passion with Groupon’s The Book Depository discount codes.
deep-sea-world listed on couponmatrix.ukWelcome to Deep Sea World, Scotland's national aquarium, bringing you sharks, fish and all manner of sea-creatures right in front of your eyes. If you want to get truly up close and personal you can even swim with the sharks - scary! Whether you're coming for school visits, with your family, friends, on a date or by your adventurous self, Deep Sea World will give you an experience you will never forget. With Deep Sea World vouchers you can enjoy the deep blue for less. Get close to nature with Deep Sea World.
desigual listed on couponmatrix.ukBring Barcelona to your wardrobe with Desigual, the Mediterranean-borne fashion brand with a stimulating visual style. Sporting sustainable designs for men, women and children alike, now you can add some Desigual panache to your clothing collection for less using a Desigual promo code. Hosting frequent clothing collaborations with unique styles throughout the world, with an emphasis on sustainably-sourced materials, Desigual brings tomorrow’s forward-thinking ethos to the forefront to deliver cool and quirky clothes that there’s no guilt in buying.
mattress-online listed on couponmatrix.ukWhether you prefer to sink into memory foam or need a firm surface, you’ll find your perfect mattress at Mattress Online. Search from thousands of mattresses in one place and compare beds and mattresses by award-winning sleep experts like Silentnight, Emma and Sleepeezee. Thanks to the 60-night mattress trial, free delivery and old mattress removal, Mattress Online can’t be beaten on convenience, and a Mattress Online discount code from Groupon will make it the most affordable too. A mattress is an investment, so sleep more soundly by bagging a Mattress Online discount from Groupon.
mr-porter listed on couponmatrix.ukJoin the ranks of the stylish elite with a trip to Mr Porter. The number 1 sophistication destination for men everywhere, Mr Porter brings you the world's best designer labels on a fuss-free, inspiration-laden platform. Shop its range with a Mr Porter discount code from Groupon and you'll be sure to save money on your next piece of high-end tailoring and high-class footwear.