How the new 0 Series launch ties into Helios Technologies stock

Helios Technologies, Inc. (HLIO) just expanded its Sun Hydraulics lineup with the new 0 Series counterbalance valves, targeting cramped, demanding hydraulic applications and subtly reinforcing the company’s edge in precision motion control.

For shareholders, this kind of focused product development can matter over time, especially when it supports higher margin, engineering driven niches rather than chasing pure volume.

At a share price of $55.86, Helios has given investors a robust year to date share price return of roughly 26 percent, while the 1 year total shareholder return of about 13 percent suggests momentum is positive but not explosive.

If this kind of targeted product launch catches your eye, it could be worth widening the lens and exploring fast growing stocks with high insider ownership for other under the radar growth stories with skin in the game.

With earnings growing faster than revenue and the stock still trading at a double digit discount to analyst targets and intrinsic value estimates, is Helios quietly undervalued, or is the market already pricing in its next leg of growth?

Most Popular Narrative: 14.3% Undervalued

With Helios Technologies last closing at $55.86 against a narrative fair value of $65.20, the valuation case leans toward a meaningful upside if assumptions hold.

The analysts have a consensus price target of $60.6 for Helios Technologies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $73.0, and the most bearish reporting a price target of just $55.0.

Want to see what kind of earnings surge, margin rebuild, and premium multiple are built into this story? The full narrative breaks down the entire playbook.

Result: Fair Value of $65.20 (UNDERVALUED)

However, end market cyclicality and slower adoption of Helios's more advanced, IoT enabled solutions could easily derail the upbeat growth and margin narrative.

Another Lens on Value

Step away from narratives and Helios suddenly looks expensive on a simple earnings lens. Its price to earnings ratio of 54.9 times compares with a fair ratio of 47.5 times, the Machinery industry at 26.2 times, and peers at 36.3 times. Is the market overpaying for the turnaround?

Build Your Own Helios Technologies Narrative

If you see the numbers differently or want to stress test the assumptions yourself, you can build a custom narrative in minutes: Do it your way.

A great starting point for your Helios Technologies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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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.