While USANA Health Sciences, Inc. (NYSE:USNA) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$47.20 and falling to the lows of US$36.10. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether USANA Health Sciences' current trading price of US$37.22 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at USANA Health Sciences’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for USANA Health Sciences

What's The Opportunity In USANA Health Sciences?

Great news for investors – USANA Health Sciences is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that USANA Health Sciences’s ratio of 12.87x is below its peer average of 26.57x, which indicates the stock is trading at a lower price compared to the Personal Products industry. USANA Health Sciences’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its industry peers, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of USANA Health Sciences look like?

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a negative profit growth of -9.3% expected next year, near-term growth certainly doesn’t appear to be a driver for a buy decision for USANA Health Sciences. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although USNA is currently trading below the industry PE ratio, the negative profit outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to USNA, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on USNA for a while, but hesitant on making the leap, we recommend you research further into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about USANA Health Sciences as a business, it's important to be aware of any risks it's facing. For example, we've found that USANA Health Sciences has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

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

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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.