Backblaze, Inc. (NASDAQ:BLZE), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the NASDAQGM over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Backblaze’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Backblaze

Is Backblaze Still Cheap?

Great news for investors – Backblaze is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $9.35, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Backblaze’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Backblaze look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 25% over the next year, the near-term future seems bright for Backblaze. 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? Since BLZE is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on BLZE for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BLZE. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.