Three Stocks That Could Be Trading Below Fair Value In July 2024

As global markets navigate a mixed economic landscape, with small-cap and value shares outpacing large-cap growth stocks, investors are on the lookout for opportunities that might be trading below their fair value. In this environment, identifying undervalued stocks can offer significant potential as market rotations and economic data continue to shape investment strategies.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Gränges (OM:GRNG)	SEK130.50	SEK259.94	49.8%
Begbies Traynor Group (AIM:BEG)	£0.99	£1.96	49.6%
Oddity Tech (NasdaqGM:ODD)	US$39.54	US$78.77	49.8%
HANMI Semiconductor (KOSE:A042700)	₩130700.00	₩260610.04	49.8%
NEXTIN (KOSDAQ:A348210)	₩55400.00	₩110408.77	49.8%
TF Bank (OM:TFBANK)	SEK260.00	SEK519.73	50%
RaySearch Laboratories (OM:RAY B)	SEK139.20	SEK277.95	49.9%
Shanghai Milkground Food Tech (SHSE:600882)	CN¥13.55	CN¥26.97	49.8%
Nokian Renkaat Oyj (HLSE:TYRES)	€8.396	€16.73	49.8%
Glenveagh Properties (ISE:GVR)	€1.40	€2.78	49.7%

Click here to see the full list of 989 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

argenx (ENXTBR:ARGX)

Overview: argenx SE is a biotechnology company focused on developing therapies for autoimmune diseases across the United States, Japan, Europe, the Middle East, Africa, and China with a market cap of €27.90 billion.

Operations: The company generates $1.66 billion in revenue from its biotechnology segment.

Estimated Discount To Fair Value: 49.4%

argenx SE's recent earnings report shows significant revenue growth, with second-quarter revenue at US$489.43 million, up from US$281.04 million a year ago. Net income turned positive at US$29.07 million compared to a net loss of US$94.37 million previously. The company's cash flow improvements are bolstered by the approval of efgartigimod SC in China and the U.S., enhancing its market potential in autoimmune diseases. Despite past shareholder dilution, argenx trades significantly below its estimated fair value, indicating potential undervaluation based on cash flows.

• The analysis detailed in our argenx growth report hints at robust future financial performance.
• Navigate through the intricacies of argenx with our comprehensive financial health report here.

WuXi XDC Cayman (SEHK:2268)

Overview: WuXi XDC Cayman Inc. is an investment holding company that provides contract research, development, and manufacturing services globally, with a market cap of HK$18.42 billion.

Operations: The company's revenue segment includes Pharmaceuticals, generating CN¥2.12 billion.

Estimated Discount To Fair Value: 44.6%

WuXi XDC Cayman Inc. is trading at HK$17.9, significantly below its estimated fair value of HK$32.33, indicating potential undervaluation based on cash flows. The company forecasts robust revenue growth of 25.3% per year and earnings growth of 44.55% per year, outpacing the Hong Kong market averages. Despite a forecasted low return on equity (17.3%) in three years and high non-cash earnings, the stock's undervaluation presents an attractive opportunity for investors focused on cash flow metrics.

• Our comprehensive growth report raises the possibility that WuXi XDC Cayman is poised for substantial financial growth.
• Delve into the full analysis health report here for a deeper understanding of WuXi XDC Cayman.

Imeik Technology DevelopmentLtd (SZSE:300896)

Overview: Imeik Technology Development Co., Ltd. focuses on the research, development, production, and transformation of biomedical soft tissue repair materials in China and has a market cap of approximately CN¥48.58 billion.

Operations: Revenue from the Surgical & Medical Equipment segment amounts to CN¥3.05 billion.

Estimated Discount To Fair Value: 45.8%

Imeik Technology Development Ltd. is trading at CN¥175.6, significantly below its estimated fair value of CN¥324.17, highlighting potential undervaluation based on cash flows. The company forecasts strong revenue growth of 26.3% per year and earnings growth of 24.9% per year, both surpassing the Chinese market averages. Despite an unstable dividend track record, the stock's considerable undervaluation and robust profit outlook make it a compelling option for investors focusing on cash flow metrics.

• Our earnings growth report unveils the potential for significant increases in Imeik Technology DevelopmentLtd's future results.
• Click here to discover the nuances of Imeik Technology DevelopmentLtd with our detailed financial health report.

Where To Now?

• Reveal the 989 hidden gems among our Undervalued Stocks Based On Cash Flows screener with a single click here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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.

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