Is Now The Time To Look At Buying Brooks Automation, Inc. (NASDAQ:BRKS)? – Simply Wall St

While Brooks Automation, Inc. (NASDAQ:BRKS) might not be the most widely known stock at the moment, it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the companys outlook is already priced into the stock. However, what if the stock is still a bargain? Lets take a look at Brooks Automations outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Brooks Automation

Brooks Automation is currently expensive based on my price multiple model, where I look at the company's price-to-earnings ratio in comparison to the industry average. Ive used the price-to-earnings ratio in this instance because theres not enough visibility to forecast its cash flows. The stocks ratio of 72.82x is currently well-above the industry average of 36.78x, meaning that it is trading at a more expensive price relative to its peers. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Brooks Automations share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Future outlook is an important aspect when youre looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so lets also take a look at the company's future expectations. With profit expected to grow by 84% over the next couple of years, the future seems bright for Brooks Automation. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

Are you a shareholder? BRKSs optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question should I sell? If you believe BRKS should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If youve been keeping tabs on BRKS for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for BRKS, which means its worth diving deeper into other factors in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Brooks Automation from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

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This article by Simply Wall St is general in nature. 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. *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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Is Now The Time To Look At Buying Brooks Automation, Inc. (NASDAQ:BRKS)? - Simply Wall St