Today we're going to take a look at the well-established Flex Ltd. (NASDAQ:FLEX). The company's stock saw a significant share price rise of 31% in the past couple of months on the NASDAQGS. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Flex’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Our free stock report includes 1 warning sign investors should be aware of before investing in Flex. Read for free now.

What Is Flex Worth?

According to our valuation model, Flex seems to be fairly priced at around 1.74% above our intrinsic value, which means if you buy Flex today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $34.28, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Flex’s share price may be more stable over time (relative to the market), as indicated by its low beta.

See our latest analysis for Flex

Can we expect growth from Flex?

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. With profit expected to grow by a double-digit 13% over the next couple of years, the outlook is positive for Flex. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in FLEX’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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on FLEX, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Flex, you'd also look into what risks it is currently facing. Case in point: We've spotted 1 warning sign for Flex you should be aware of.

If you are no longer interested in Flex, 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.