Varex Imaging stock barely budged today, up less than 1%, which might suggest a routine quarter. The earnings story is anything but routine. After a recent stretch that included quarterly losses, Varex Imaging just posted positive basic earnings per share and a solid net income for Q3 on roughly US$210 million of revenue.

The key consideration for you as an investor now relates to timing. In the short term, the stock trades on a rich P/E multiple with only modest recent share price gains. Over a longer horizon, analysts project strong earnings growth and a discounted cash flow value that they estimate to be far above where the stock closed today.

Love that Varex Imaging is back to positive earnings but uneasy about paying a rich P/E for…