As the U.S. stock market continues its rally, buoyed by tech sector gains and eased trade tensions between the U.S. and China, investors are keenly observing opportunities amid a landscape of recovering indices. In this environment, identifying undervalued stocks can be crucial for those looking to capitalize on potential growth prospects that may not yet be fully reflected in current prices.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Provident Financial Services (NYSE:PFS) | $17.98 | $35.55 | 49.4% |
| Berkshire Hills Bancorp (NYSE:BHLB) | $26.78 | $52.65 | 49.1% |
| Valley National Bancorp (NasdaqGS:VLY) | $9.20 | $18.28 | 49.7% |
| Horizon Bancorp (NasdaqGS:HBNC) | $15.80 | $30.73 | 48.6% |
| First Reliance Bancshares (OTCPK:FSRL) | $9.30 | $18.49 | 49.7% |
| Bel Fuse (NasdaqGS:BELF.A) | $72.65 | $142.88 | 49.2% |
| Shoals Technologies Group (NasdaqGM:SHLS) | $6.03 | $11.81 | 48.9% |
| FinWise Bancorp (NasdaqGM:FINW) | $15.05 | $29.22 | 48.5% |
| Clearfield (NasdaqGM:CLFD) | $37.73 | $74.78 | 49.5% |
| MAC Copper (NYSE:MTAL) | $10.06 | $20.00 | 49.7% |
Let's review some notable picks from our screened stocks.
Mr. Cooper Group (NasdaqCM:COOP)
Overview: Mr. Cooper Group Inc., with a market cap of $7.63 billion, operates as a non-bank servicer of residential mortgage loans in the United States through its subsidiaries.
Operations: The company's revenue is primarily derived from its Servicing segment, which accounts for $1.62 billion, and its Originations segment, contributing $532 million.
Estimated Discount To Fair Value: 31.8%
Mr. Cooper Group is trading at US$128.35, significantly below its estimated fair value of US$188.11, making it undervalued based on cash flows. Despite a forecasted annual earnings growth rate of 24.92%, the company's recent financials show a decline in net income and earnings per share compared to the previous year. Additionally, significant insider selling has occurred recently, and debt coverage by operating cash flow remains inadequate amidst an acquisition agreement with Rocket Companies valued at $9.4 billion.
- Our earnings growth report unveils the potential for significant increases in Mr. Cooper Group's future results.
- Click here to discover the nuances of Mr. Cooper Group with our detailed financial health report.
Bloom Energy (NYSE:BE)
Overview: Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation both in the United States and internationally, with a market cap of approximately $4.39 billion.
Operations: The company's revenue primarily comes from its electric equipment segment, which generated $1.56 billion.
Estimated Discount To Fair Value: 28.5%
Bloom Energy, with shares at US$19.16, is undervalued by 28.5% against its fair value of US$26.79 based on cash flows. The company has recently turned profitable and forecasts a significant annual earnings growth rate of 47.31%, outpacing the broader market's growth expectations. However, interest payments are not well covered by earnings, and recent insider selling raises concerns despite strong revenue growth from initiatives like the Conagra collaboration for sustainable energy solutions.
- Our comprehensive growth report raises the possibility that Bloom Energy is poised for substantial financial growth.
- Delve into the full analysis health report here for a deeper understanding of Bloom Energy.
Fidelity National Information Services (NYSE:FIS)
Overview: Fidelity National Information Services, Inc. (NYSE: FIS) is a global provider of technology solutions for merchants, banks, and capital markets firms with a market cap of approximately $41.44 billion.
Operations: The company's revenue is primarily derived from its Banking Solutions segment at $6.93 billion and Capital Market Solutions segment at $3.04 billion.
Estimated Discount To Fair Value: 32%
Fidelity National Information Services (FIS), priced at $77.68, is trading 32% below its fair value estimate of $114.17 based on discounted cash flows, suggesting it is undervalued. Despite a high debt level and a dividend yield of 2.06% not well covered by earnings, FIS's earnings are projected to grow significantly at 23.7% annually, outpacing the market average of 14.2%. Recent innovations like the Money Movement Hub enhance its financial services offerings amidst slower revenue growth forecasts compared to the US market.
- The analysis detailed in our Fidelity National Information Services growth report hints at robust future financial performance.
- Click to explore a detailed breakdown of our findings in Fidelity National Information Services' balance sheet health report.
Turning Ideas Into Actions
- Explore the 169 names from our Undervalued US Stocks Based On Cash Flows screener 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.
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Ready To Venture Into Other Investment Styles?
- 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.
Valuation is complex, but we're here to simplify it.
Discover if Bloom Energy might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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