While Tactile Systems Technology, Inc. (NASDAQ:TCMD) might not have the largest market cap around , it saw a significant share price rise of 99% in the past couple of months on the NASDAQGM. The recent share price gains has brought the company back closer to 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. But what if there is still an opportunity to buy? Let’s examine Tactile Systems Technology’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part – they are all under $10bn in marketcap – there is still time to get in early.

According to our price multiple model, which makes a comparison between the company’s price-to-earnings ratio and the industry average, the stock price seems to be justfied. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Tactile Systems Technology’s ratio of 35.63x is trading slightly above its industry peers’ ratio of 31.99x, which means if you buy Tactile Systems Technology today, you’d be paying a relatively reasonable price for it. And if you believe that Tactile Systems Technology should be trading at this level in the long run, then there should only be a fairly immaterial downside vs other industry peers. Furthermore, Tactile Systems Technology’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.

View our latest analysis for Tactile Systems Technology

earnings-and-revenue-growth

NasdaqGM:TCMD Earnings and Revenue Growth January 24th 2026

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 47% over the next couple of years, the future seems bright for Tactile Systems Technology. 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? It seems like the market has already priced in TCMD’s positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at TCMD? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?

Are you a potential investor? If you’ve been keeping tabs on TCMD, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for TCMD, 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.

So while earnings quality is important, it’s equally important to consider the risks facing Tactile Systems Technology at this point in time. At Simply Wall St, we found 1 warning sign for Tactile Systems Technology and we think they deserve your attention.

If you are no longer interested in Tactile Systems Technology, 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.