Stock Analysis

3 US Stocks Estimated To Be Up To 29.2% Undervalued Offering A Strategic Opportunity

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As the U.S. stock market takes a pause following a post-election rally that pushed major indices to record highs, investors are keenly observing opportunities amid fluctuating conditions. In this environment, identifying undervalued stocks can offer strategic advantages, as these equities may present potential for growth when the broader market stabilizes or advances further.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

NameCurrent PriceFair Value (Est)Discount (Est)
NBT Bancorp (NasdaqGS:NBTB)$50.53$99.9349.4%
UMB Financial (NasdaqGS:UMBF)$125.81$245.9148.8%
Synovus Financial (NYSE:SNV)$58.27$115.2349.4%
Five Star Bancorp (NasdaqGS:FSBC)$32.82$63.9348.7%
Datadog (NasdaqGS:DDOG)$123.41$243.6349.3%
West Bancorporation (NasdaqGS:WTBA)$24.02$46.8648.7%
Pinterest (NYSE:PINS)$30.67$59.5448.5%
Advanced Energy Industries (NasdaqGS:AEIS)$114.29$219.4947.9%
LifeMD (NasdaqGM:LFMD)$7.16$14.1549.4%
Clearfield (NasdaqGM:CLFD)$33.02$64.8549.1%

Click here to see the full list of 192 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Global-E Online (NasdaqGS:GLBE)

Overview: Global-E Online Ltd. offers a platform that facilitates and speeds up direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and other international markets, with a market cap of approximately $6.71 billion.

Operations: The company generates revenue of $507.01 million from its Internet Information Providers segment.

Estimated Discount To Fair Value: 16.2%

Global-E Online, trading at US$42.53, is considered undervalued with an estimated fair value of US$50.76, presenting a 16.2% discount based on discounted cash flow analysis. Despite recent lowered earnings guidance for 2024 and ongoing losses, the company shows promising revenue growth forecasts of 24.2% annually—outpacing the broader market—and aims to achieve profitability within three years, reflecting potential long-term value despite current challenges.

NasdaqGS:GLBE Discounted Cash Flow as at Nov 2024

Texas Capital Bancshares (NasdaqGS:TCBI)

Overview: Texas Capital Bancshares, Inc. is the bank holding company for Texas Capital Bank, offering full-service financial solutions to businesses, entrepreneurs, and individual customers with a market cap of $4.06 billion.

Operations: The company's revenue segment includes Banking, which generated $826.52 million.

Estimated Discount To Fair Value: 19.6%

Texas Capital Bancshares, trading at US$89, is undervalued with an estimated fair value of US$110.72. Despite a recent net loss of US$61.32 million for Q3 2024 and reduced profit margins from last year, its earnings are forecast to grow significantly at 90.8% per year over the next three years—surpassing the broader market's growth rate. However, challenges persist with lower-than-expected return on equity forecasts and no recent share buybacks completed this quarter.

NasdaqGS:TCBI Discounted Cash Flow as at Nov 2024

ServisFirst Bancshares (NYSE:SFBS)

Overview: ServisFirst Bancshares, Inc. is a bank holding company for ServisFirst Bank, offering a range of banking services to individual and corporate clients, with a market cap of approximately $5.39 billion.

Operations: The company's revenue is primarily generated from its Business and Personal Financial Services segment, which accounts for $426.98 million.

Estimated Discount To Fair Value: 29.2%

ServisFirst Bancshares, trading at US$96.61, is undervalued with a fair value estimate of US$136.4. Despite significant insider selling recently and CFO changes, the company shows strong fundamentals with net interest income rising to US$115.12 million in Q3 2024 from US$99.7 million a year ago. Earnings are forecast to grow significantly at 21.3% annually, outpacing the broader market's growth rate and supporting its undervaluation based on cash flows analysis.

NYSE:SFBS Discounted Cash Flow as at Nov 2024

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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.

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