Stock Analysis

3 US Stocks That May Be Trading Below Estimated Value In January 2025

NYSE:AGX
Source: Shutterstock

As the United States stock market shows signs of recovery with major indexes poised for weekly gains, investors are keenly observing the impact of recent economic data, which has fueled optimism about potential interest rate cuts. In this environment, identifying stocks that may be trading below their estimated value becomes crucial, as these opportunities can offer significant potential for growth if market conditions continue to improve.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Burke & Herbert Financial Services (NasdaqCM:BHRB)$61.21$117.5947.9%
German American Bancorp (NasdaqGS:GABC)$39.47$78.0649.4%
Berkshire Hills Bancorp (NYSE:BHLB)$28.50$55.6948.8%
Old National Bancorp (NasdaqGS:ONB)$22.70$43.9048.3%
Equity Bancshares (NYSE:EQBK)$43.00$85.1749.5%
Kanzhun (NasdaqGS:BZ)$13.86$27.1949%
Cadre Holdings (NYSE:CDRE)$36.03$70.0048.5%
Constellium (NYSE:CSTM)$10.93$21.0948.2%
Bilibili (NasdaqGS:BILI)$16.98$32.7348.1%
Mobileye Global (NasdaqGS:MBLY)$16.51$32.9249.9%

Click here to see the full list of 165 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Argan (NYSE:AGX)

Overview: Argan, Inc., with a market cap of $2.38 billion, operates through its subsidiaries to offer engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market.

Operations: The company's revenue segments include Power Services at $615.58 million, Telecom Services at $14.70 million, and Industrial Services at $175.98 million.

Estimated Discount To Fair Value: 36.2%

Argan, Inc. appears undervalued based on cash flows, trading at US$175.35, which is 36.2% below its estimated fair value of US$274.86. The company reported robust earnings growth of 94.6% over the past year and forecasts suggest annual profit growth of 21.2%, outpacing the broader US market's expected growth rate of 14.9%. Recent earnings showed significant improvements, with net income rising to US$28 million for Q3 2024 from US$5.46 million a year ago.

NYSE:AGX Discounted Cash Flow as at Jan 2025
NYSE:AGX Discounted Cash Flow as at Jan 2025

Cushman & Wakefield (NYSE:CWK)

Overview: Cushman & Wakefield plc, with a market cap of $2.96 billion, provides commercial real estate services globally under its brand in regions including the United States, Australia, and the United Kingdom.

Operations: The company's revenue segments are comprised of $1.46 billion from APAC, $950.80 million from EMEA, and $6.96 billion from the Americas.

Estimated Discount To Fair Value: 24.8%

Cushman & Wakefield is trading at US$13.14, approximately 24.8% below its estimated fair value of US$17.46, suggesting it may be undervalued based on cash flows. The company recently turned profitable with a net income of US$33.7 million for Q3 2024 compared to a loss last year and forecasts indicate earnings growth of over 20% annually, outpacing the broader market's expected growth rate of 14.9%.

NYSE:CWK Discounted Cash Flow as at Jan 2025
NYSE:CWK Discounted Cash Flow as at Jan 2025

SouthState (NYSE:SSB)

Overview: SouthState Corporation is the bank holding company for SouthState Bank, National Association, offering a variety of banking services and products to individuals and businesses, with a market cap of approximately $10.07 billion.

Operations: The company generates revenue of approximately $1.67 billion from its banking operations segment, providing a wide range of financial services to both individuals and businesses.

Estimated Discount To Fair Value: 29.6%

SouthState, trading at US$98.63, is considered undervalued with a fair value estimate of US$140.09. Earnings are projected to grow 29.7% annually, surpassing the broader market's 14.9% growth expectation. Despite significant insider selling recently and past shareholder dilution, the company maintains a reliable dividend yield of 2.19%. The recent merger with Independent Bank Group introduces experienced directors to its board, potentially enhancing strategic direction and continuity in key markets.

NYSE:SSB Discounted Cash Flow as at Jan 2025
NYSE:SSB Discounted Cash Flow as at Jan 2025

Summing It All Up

Interested In Other Possibilities?

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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About NYSE:AGX

Argan

Through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market.

Outstanding track record with flawless balance sheet and pays a dividend.

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