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Is it time to consider buying Hooker Furnishings Corporation (NASDAQ: HOFT)?

Hooker Furnishings Corporation (NASDAQ:HOFT), isn’t the biggest company in the market, but it has garnered a lot of attention due to a substantial price movement on the NASDAQGS over the past few months, rising to 26, US$97 at one point, and falling to the minimum of US$21.80. Certain movements in the stock price can give investors a better opportunity to get into the stock and potentially buy at a lower price. One question to answer is does Hooker Furnishings current trading price of US$23.16 reflect the true value of the small cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of Hooker Furnishings based on the most recent financial data to see if there are any catalysts for a price change.

What is the opportunity at Hooker Furnishings?

The stock price looks reasonable at the moment based on my multiple price model, where I compare the company’s price-earnings ratio to the industry average. I used the price/earnings ratio in this case because there is not enough visibility to predict its cash flow. The stock ratio of 11.4x is currently trading slightly above its industry peers ratio of 9.59x, which means that if you buy Hooker Furnishings today, you will pay a relatively reasonable price. . And if you think Hooker Furnishings should be trading within this range, then there really isn’t room for the stock price to rise above the levels of other industry peers over the long term. Also, it looks like Hooker Furnishings’ stock price is fairly stable, which means there might be less chance of buying low in the future now that its price is similar to their industry peers. This is because the stock is less volatile than the broader market given its low beta.

What does the future of Hooker Furnishings look like?

NasdaqGS: HOFT Earnings and Revenue Growth January 16, 2022

Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Buying a big company with solid prospects at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profits expected to increase 47% over the next two years, the future looks bright for Hooker Furnishings. It seems that a higher cash flow is expected for the stock, which should translate into a higher valuation of the stock.

What does this mean to you :

Are you a shareholder? It looks like the market has already priced in the positive outlook for HOFT, with stocks trading around sector price multiples. However, there are also other important factors that we haven’t considered today, such as the background of its management team. Have these factors changed since the last time you consulted HOFT? Will you be confident enough to invest in the company if the price drops below the industry PE ratio?

Are you a potential investor? If you’ve been keeping an eye on HOFT, now might not be the best time to buy, given that it’s trading around industry price multiples. However, the positive outlook is encouraging for HOFT, which means it is worth digging deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Diving deeper into the forecast for Hooker Furnishings mentioned earlier will help you understand how analysts view the stock going forward. Then do not hesitate to consult our free graph representing the forecasts of the analysts.

If you are no longer interested in Hooker Furnishings, you can use our free platform to view our list of over 50 other high growth potential stocks.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.