3 US Stocks That Investors May Be Undervaluing By Up To 47.2%

As the U.S. stock market experiences a pullback from record highs, with major indices like the Dow Jones and Nasdaq showing signs of volatility, investors are keenly observing economic indicators that could influence future Federal Reserve decisions. In this fluctuating environment, identifying undervalued stocks becomes crucial for investors looking to capitalize on potential growth opportunities amidst broader market adjustments.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Clear Secure (NYSE:YOU)	$27.38	$53.40	48.7%
UMB Financial (NasdaqGS:UMBF)	$124.97	$244.29	48.8%
West Bancorporation (NasdaqGS:WTBA)	$23.94	$46.42	48.4%
Equity Bancshares (NYSE:EQBK)	$47.67	$92.84	48.7%
U.S. Physical Therapy (NYSE:USPH)	$95.66	$187.03	48.9%
First Advantage (NasdaqGS:FA)	$19.81	$39.49	49.8%
DoubleVerify Holdings (NYSE:DV)	$20.77	$41.28	49.7%
VSE (NasdaqGS:VSEC)	$115.51	$226.68	49%
Carter Bankshares (NasdaqGS:CARE)	$19.30	$38.28	49.6%
Marcus & Millichap (NYSE:MMI)	$41.47	$81.20	48.9%

Click here to see the full list of 193 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

Coastal Financial (NasdaqGS:CCB)

Overview: Coastal Financial Corporation is the bank holding company for Coastal Community Bank, offering a range of banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region of Washington, with a market cap of approximately $1.01 billion.

Operations: The company's revenue is primarily derived from three segments: CCBX ($192.73 million), Community Bank ($78.94 million), and Treasury & Administration ($12.45 million).

Estimated Discount To Fair Value: 47.2%

Coastal Financial appears undervalued, trading at US$78.98, significantly below its estimated fair value of US$149.47. Despite recent insider selling, the company's revenue and earnings are forecast to grow substantially faster than the market average over the next three years. Recent third-quarter results showed increased net interest income and net income year-over-year. The completion of an $85.2 million equity offering could support further growth initiatives in its FinTech division under new leadership.

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

Sportradar Group (NasdaqGS:SRAD)

Overview: Sportradar Group AG, along with its subsidiaries, offers sports data services for the sports betting and media industries across the United Kingdom, the United States, Malta, Switzerland, and internationally, with a market cap of approximately $5.11 billion.

Operations: Sportradar Group AG generates its revenue through providing sports data services tailored for the sports betting and media sectors in various regions, including the UK, US, Malta, Switzerland, and other international markets.

Estimated Discount To Fair Value: 16%

Sportradar Group, trading at US$17.6, is undervalued by 16% compared to its fair value of US$20.96. The company recently became profitable and forecasts earnings growth significantly above the market average over the next three years. With a focus on M&A opportunities to enhance organic growth, Sportradar's revenue is expected to grow faster than the US market, supported by innovative NBA partnerships and enhanced fan engagement solutions.

• Insights from our recent growth report point to a promising forecast for Sportradar Group's business outlook.
• Delve into the full analysis health report here for a deeper understanding of Sportradar Group.

Associated Banc-Corp (NYSE:ASB)

Overview: Associated Banc-Corp is a bank holding company offering a range of banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota, with a market cap of approximately $4.23 billion.

Operations: The company's revenue segments consist of $843.01 million from Community, Consumer, and Business services, $683.40 million from Corporate and Commercial Specialty services, and -$518.70 million from Risk Management and Shared Services.

Estimated Discount To Fair Value: 37.5%

Associated Banc-Corp, trading at US$26.27, is undervalued by 37.5% compared to its fair value of US$42.06. The bank's strategic repositioning involves selling US$2 billion in low-yielding assets to enhance profitability and organic growth potential. Despite recent shareholder dilution and insider selling, earnings are projected to grow significantly above the market average over the next three years, though profit margins have declined from last year’s levels.

• The growth report we've compiled suggests that Associated Banc-Corp's future prospects could be on the up.
• Take a closer look at Associated Banc-Corp's balance sheet health here in our report.

Where To Now?

• Access the full spectrum of 193 Undervalued US Stocks Based On Cash Flows by clicking on this link.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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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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