Three Stocks Estimated To Be Undervalued In October 2024

As global markets navigate the complexities of rising oil prices due to Middle East tensions and unexpected job gains in the U.S., investors are keenly observing how these developments impact stock indices. The S&P 500 has managed to maintain its upward momentum, while European markets face challenges from geopolitical uncertainties, highlighting the importance of identifying stocks that may be undervalued amidst these conditions. In this environment, a good stock is often characterized by strong fundamentals and resilience against broader market volatility, offering potential opportunities for those seeking value in uncertain times.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Densan System Holdings (TSE:4072)	¥2659.00	¥5312.88	50%
Apollo Pipes (BSE:531761)	₹568.75	₹1136.67	50%
Jetpak Top Holding (OM:JETPAK)	SEK107.00	SEK213.88	50%
Neusoft (SHSE:600718)	CN¥9.70	CN¥19.33	49.8%
Mahindra Logistics (NSEI:MAHLOG)	₹500.75	₹1000.11	49.9%
Rajesh Exports (NSEI:RAJESHEXPO)	₹291.45	₹580.98	49.8%
EVERTEC (NYSE:EVTC)	US$32.96	US$65.85	49.9%
Treasury Wine Estates (ASX:TWE)	A$12.11	A$24.19	49.9%
Little Green Pharma (ASX:LGP)	A$0.085	A$0.17	49.8%
SysGroup (AIM:SYS)	£0.325	£0.65	49.9%

Click here to see the full list of 947 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Turkiye Garanti Bankasi (IBSE:GARAN)

Overview: Turkiye Garanti Bankasi A.S. offers a range of banking products and services in Turkey with a market cap of TRY493.92 billion.

Operations: The company's revenue segments include Retail Banking at TRY95.70 billion, Investment Banking at -TRY98.03 billion, and Corporate and Commercial Banking at TRY111.49 billion.

Estimated Discount To Fair Value: 40.3%

Turkiye Garanti Bankasi appears undervalued, trading at TRY117.6, significantly below its estimated fair value of TRY196.88. Recent earnings reports show robust growth, with net interest income reaching TRY 32.94 billion for Q2 2024 and net income at TRY 21.87 billion, reflecting strong cash flow generation capabilities despite an unstable dividend track record. Revenue is projected to grow at 28.1% annually, outpacing the Turkish market's average growth rate of 25.2%.

• Insights from our recent growth report point to a promising forecast for Turkiye Garanti Bankasi's business outlook.
• Navigate through the intricacies of Turkiye Garanti Bankasi with our comprehensive financial health report here.

GXO Logistics (NYSE:GXO)

Overview: GXO Logistics, Inc., along with its subsidiaries, offers logistics services globally and has a market cap of $6.08 billion.

Operations: The company generates revenue of $10.36 billion from its Business Services segment.

Estimated Discount To Fair Value: 19.4%

GXO Logistics is trading at US$58.07, below its estimated fair value of US$72.01, indicating potential undervaluation based on cash flows. Despite a high debt level and recent profit margin decline from 2.1% to 1.4%, GXO's earnings are forecast to grow significantly at 35% annually, surpassing the US market's growth rate of 15.9%. Recent strategic partnerships and technological advancements aim to enhance operational efficiency and support future revenue growth projections of 10.4% per year.

• Our growth report here indicates GXO Logistics may be poised for an improving outlook.
• Click to explore a detailed breakdown of our findings in GXO Logistics' balance sheet health report.

Spotify Technology (NYSE:SPOT)

Overview: Spotify Technology S.A., along with its subsidiaries, offers audio streaming subscription services globally and has a market cap of approximately $75.10 billion.

Operations: Spotify generates revenue through its Premium segment, which accounts for €12.68 billion, and its Ad-Supported segment, contributing €1.79 billion.

Estimated Discount To Fair Value: 20.3%

Spotify Technology is trading at US$378, below its estimated fair value of US$474.09, suggesting undervaluation based on cash flows. The company became profitable this year with earnings expected to grow significantly at 30.9% annually, outpacing the US market. Recent partnerships like Cineverse's content distribution enhance Spotify's video offerings, potentially boosting user engagement and revenue growth forecasted at 12.5% per year despite past shareholder dilution concerns.

• In light of our recent growth report, it seems possible that Spotify Technology's financial performance will exceed current levels.
• Dive into the specifics of Spotify Technology here with our thorough financial health report.

Next Steps

• Navigate through the entire inventory of 947 Undervalued Stocks Based On Cash Flows here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Curious About Other Options?

• 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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