Should you consider buying Manhattan Associates, Inc. (NASDAQ:MANH) now?

Today, we’re taking a look at established company Manhattan Associates, Inc. (NASDAQ:MANH). The company’s stock has seen a decent 17% gain over the past few months on the NASDAQGS. Shareholders may appreciate the recent jump in share price, but the company still has a long way to go before it reclaims its yearly highs. Since it’s a large-cap stock with high analyst coverage, one might assume that any recent changes in the company’s outlook are already priced in. But what if the stock is still a bargain? Let’s take a closer look at Manhattan Associates’ valuation and outlook to see if there’s still a bargain opportunity.

Check out our latest analysis for Manhattan Associates

Is Manhattan Associates still cheap?

According to our valuation model, Manhattan Associates appears to be fairly valued at around 5.60% above our intrinsic value, which means that if you buy Manhattan Associates today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $227.66, then there’s actually no room for the share price to rise beyond its current price. However, a buying opportunity could arise in the future. This is because Manhattan Associates’ beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. When the market is down, the company’s shares are likely to fall more than the rest of the market, presenting an excellent buying opportunity.

Can we expect growth from Manhattan Associates?

Future prospects are an important consideration when looking to buy a stock, especially if you’re an investor looking for growth in your portfolio. Although value investors would argue that intrinsic value relative to price is most important, high growth potential at a cheap price would be a more compelling investment thesis. Manhattan Associates’ earnings are expected to grow 37% over the next few years, suggesting a very optimistic future. This should lead to more robust cash flows and result in higher share value.

What this means for you

Are you a shareholder? It seems like the market has already priced in MANH’s positive outlook, with shares trading around fair value. However, there are other important factors we haven’t considered today, such as the company’s financial strength. Have these factors changed since you last looked at the stock? Will you have enough conviction to buy if the price fluctuates below true value?

Are you a potential investor? If you’ve been keeping an eye on MANH, now might not be the best time to buy as the stock is trading around its fair value. However, the bullish outlook is encouraging for the company, meaning it’s worth diving deeper into other factors such as the strength of its balance sheet to take advantage of the next price dip.

Taking a closer look at the Manhattan Associates predictions above can help you better understand how analysts view the stock going forward. Luckily, you can check out analyst predictions here.

If you are no longer interested in Manhattan Associates, you can view our list of over 50 other stocks with high growth potential on our free platform.

Do you have feedback on this article? Are you concerned about the content? Get in touch directly from us. Alternatively, send an email to editorial-team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

Do you have feedback on this article? Are you interested in the content? Contact us directly. Alternatively, send an email to [email protected]