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:

aeg listed on couponmatrix.ukbee-inspired listed on couponmatrix.ukclick-4-warranty listed on couponmatrix.ukcricut listed on couponmatrix.ukelf-cosmetics listed on couponmatrix.ukvegas-creative-software listed on couponmatrix.uk
aeg listed on couponmatrix.ukWhether you’re hosting a dinner party or doing the laundry, AEG appliances give households a helping hand by being a step ahead of its competitors. From swanky wine cabinets to AEG induction hobs, AEG is all about innovation. These appliances aren’t just affordable – they’re built to last, and you can even buy replacement parts and accessories to keep your dishwasher or vacuum cleaner ticking along for years to come. Using your AEG discount code from Groupon, you could fill your home with first-rate appliances that will make you wonder why you ever used anything else.
bee-inspired listed on couponmatrix.ukDon’t be ordinary, be dedicated and inspired. That’s what global retailer Bee Inspired wants you to think when you see the awesome apparel it has in stock. Forget the copycat clothing of the catwalk and use your Bee Inspired discount code to find unique products that help you feel more like an icon than an imitation. From jeans and jackets to trainers and tees, you’ll find fresh style for a fabulous price at Bee Inspired.
click-4-warranty listed on couponmatrix.ukKeep your car protected quickly and affordable with Click4Warranty, the insurance provider with over fifteen years experience working for UK drivers. With three levels of cover available to match budgets of all sizes, you could bump up your policy at minimal expense by using a Click4Warranty discount code from Groupon. Whatever parts of your vehicle you’re seeking to insure and whatever mileage your four wheels have already covered, rest assured you’ll find the policy to match at Click4Warranty. The team at Click4Warranty want new customers to have plenty of leeway when it comes to confirming their policy, which is why each policy now comes with an extended 21 days cooling-off period once taken out. A customer can cancel their policy if you have any second thoughts during this period, with a full refund guaranteed – whatever your reason for cancelling. This gives every driver ample opportunity to research other providers if needed – though we doubt you’ll find a price more competitive than Click4Warranty’s. There are many reasons why drivers should choose Click4Warranty to protect their vehicle. The brand offers no maximum mileage limit on policies for one, whilst the ability to knock the cost of cover with a Click4Warranty voucher code is a sweet bonus too. Top it off with the fact that any parts covered in a policy that fail an MOT will be covered too and you can easily see why so many opt for Click4Warranty for quick, effective protection.
cricut listed on couponmatrix.ukLet your creativity run wild with Cricut, the cutting machine taking craft projects to the next level. Connect to your new machine via an app and then cut intricate card designs, make stickers and print iron-transfers for T-shirts – the sky’s the limit! Cricut machines are compatible with paper, vinyl and even leather or wood, and projects can be controlled easily via the app. Save money on machines, heat presses and more accessories with a Cricut discount code from Groupon. As well as voucher codes, we’re following all the sneaky money-saving tips to get your Cricut machine for less.
elf-cosmetics listed on couponmatrix.ukElf Cosmetics was created with the philosophy in mind that all beauty comes from within, and by using the perfect cosmetics, you can help to capture the true essence of who you are - on the inside and the outside. So why not indulge in quality ingredients for less with an elf discount code, and take your beauty regime to the next level. Designed to give you more confidence in yourself and in your look, you can let your beauty shine with Elf.
vegas-creative-software listed on couponmatrix.ukStream, edit and create with Vegas Creative Software! Offering some of the best video and audio editing software available on the market today, this software is a fan-favourite for professionals and amateurs alike. Get a great deal on this stellar service with a Vegas Creative Software discount code and begin your creative journey with plenty of extra cash in the bank. Whether your passion lies in sound, film or animation, it's easy to bring your ambitions to live with Vegas Creative Software. At Groupon, we know that creative professionals are always looking for ways to save money on software products. That's why we do our damndest to find the best discount codes and promo codes for VEGAS Creative Software, whatever kind of content creator you are. We want you to be able to get the software you need at a price you can afford, so check back often for the latest deals! If you're looking for a great deal on VEGAS Creative Software, be sure to check out their selection of discounts on VEGAS products. With VEGAS Creative Software promo codes, you can save even more on editing, production and streaming tools designed to give your content an edge. So whether you're looking to use VEGAS Pro, VEGAS Post or VEGAS Edit, you're sure to find a great deal that'll knock the cost of the software you need most.