Is there an opportunity now in Qurate Retail, Inc. (NASDAQ: QRTE.A)?
While Qurate Retail, Inc. (NASDAQ: QRTE.A) may not be the most well-known stock at the moment, it has seen a significant move in the share price in recent months on the NASDAQGS, hitting highs of US $ 12.10 and falling to lows of US $ 10.00. Certain movements in stock prices can give investors a better opportunity to get into the stock, and potentially buy at a lower price. One question to be answered is whether Qurate Retail’s current trading price of US $ 10.36 reflects the true value of the mid-cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of Qurate Retail based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest review for Qurate Retail
What is Qurate Retail worth?
Good news, investors! Qurate Retail is still a good deal at the moment under my multiple pricing model, which compares the company’s price-to-earnings ratio to the industry average. I used the price / earnings ratio in this case because there is not enough visibility to forecast its cash flow. The stock’s ratio of 2.95x is currently well below the industry average of 30.72x, meaning it is trading at a lower price than its peers. What is more interesting is that the Qurate Retail share price is quite volatile, which gives us more chances to buy as the stock price could go down (or up) in the future. This is based on its high beta, which is a good indicator of how the stock is moving relative to the rest of the market.
Can we expect growth from Qurate Retail?
Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s take a look at the future expectations of the business as well. However, with an extremely negative double-digit change in earnings expected over the next two years, near-term growth is certainly not a driver of a buying decision. It looks like a lot of uncertainty is on the cards for Qurate Retail, at least in the near future.
What this means for you:
Are you a shareholder? Although QRTE.A is currently trading below the industry PE ratio, the unfavorable prospect of negative growth carries a certain degree of risk. I recommend that you think about whether you want to increase your portfolio’s exposure to QRTE.A, or whether diversifying into another stock may be a better decision for your total risk and return.
Are you a potential investor? If you’ve been keeping your eye on QRTE.A for a while, but hesitant to take the plunge, I recommend you dig deeper into the stock. Given its current price multiple, now is the time to make a decision. But keep in mind the risks that come with negative growth prospects going forward.
So, if you want to delve deeper into this title, it is crucial to consider the risks it faces. Every business has risks, and we have spotted 4 warning signs for Qurate Retail (of which 1 is of concern!) that you should know about.
If you are no longer interested in Qurate Retail, you can use our free platform to view our list of over 50 other stocks with high growth potential.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.