The United States market has shown positive momentum, with a 1.3% increase over the last week and an 8.2% rise over the past year, while earnings are expected to grow by 14% annually. In this environment, identifying stocks that may be trading below their estimated value can offer investors potential opportunities for growth as these companies might be poised to benefit from improving market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| MINISO Group Holding (NYSE:MNSO) | $18.52 | $36.74 | 49.6% |
| Quaker Chemical (NYSE:KWR) | $104.51 | $205.79 | 49.2% |
| First Internet Bancorp (NasdaqGS:INBK) | $23.06 | $45.33 | 49.1% |
| Excelerate Energy (NYSE:EE) | $27.50 | $54.11 | 49.2% |
| First Reliance Bancshares (OTCPK:FSRL) | $9.30 | $18.49 | 49.7% |
| Ready Capital (NYSE:RC) | $4.38 | $8.67 | 49.5% |
| Live Oak Bancshares (NYSE:LOB) | $26.62 | $52.45 | 49.2% |
| StoneCo (NasdaqGS:STNE) | $13.81 | $27.35 | 49.5% |
| FinWise Bancorp (NasdaqGM:FINW) | $14.70 | $29.22 | 49.7% |
| Verra Mobility (NasdaqCM:VRRM) | $24.28 | $47.80 | 49.2% |
We'll examine a selection from our screener results.
Tetra Tech (NasdaqGS:TTEK)
Overview: Tetra Tech, Inc. offers consulting and engineering services with a focus on water, environment, and sustainable infrastructure, and has a market cap of approximately $8.14 billion.
Operations: Tetra Tech's revenue segments include consulting and engineering services concentrated on water, environment, and sustainable infrastructure.
Estimated Discount To Fair Value: 11.1%
Tetra Tech is trading at US$34.88, slightly below its estimated fair value of US$39.23, indicating potential undervaluation based on cash flows. Despite high debt levels and recent goodwill impairments impacting earnings, the company expects significant earnings growth over the next three years, outpacing the broader market. Recent contracts and increased revenue guidance for 2025 highlight operational strength amidst challenges like reduced profit margins from one-off items affecting financial results.
- Our earnings growth report unveils the potential for significant increases in Tetra Tech's future results.
- Navigate through the intricacies of Tetra Tech with our comprehensive financial health report here.
Coupang (NYSE:CPNG)
Overview: Coupang, Inc. operates a retail business through mobile applications and internet websites in South Korea and internationally, with a market cap of $48.30 billion.
Operations: Coupang's revenue is primarily derived from its Product Commerce segment, which generated $27.08 billion, and its Developing Offerings segment, which contributed $3.99 billion.
Estimated Discount To Fair Value: 18.8%
Coupang's recent earnings report shows revenue of US$7.91 billion and net income of US$107 million, reflecting an improvement from the previous year. The company is trading at US$25.63, below its estimated fair value of US$31.55, suggesting some undervaluation based on cash flows despite lower profit margins compared to last year. Coupang's strategic initiatives like Rocket Pitch and a share repurchase program worth up to $1 billion could enhance cash flow prospects further.
- Our expertly prepared growth report on Coupang implies its future financial outlook may be stronger than recent results.
- Unlock comprehensive insights into our analysis of Coupang stock in this financial health report.
Hims & Hers Health (NYSE:HIMS)
Overview: Hims & Hers Health, Inc. operates a telehealth platform connecting consumers with licensed healthcare professionals across the United States, the United Kingdom, and internationally, with a market cap of $11.72 billion.
Operations: The company's revenue segment from online retailers amounts to $1.78 billion.
Estimated Discount To Fair Value: 42.3%
Hims & Hers Health is trading at US$51.40, significantly below its estimated fair value of US$89.01, indicating potential undervaluation based on cash flows. The company reported Q1 sales of US$586.01 million and net income of US$49.49 million, showcasing strong growth from the previous year. Recent executive appointments and a partnership with Novo Nordisk aim to enhance its healthcare platform and expand access to personalized care, potentially bolstering future cash flow generation despite recent insider selling activities.
- According our earnings growth report, there's an indication that Hims & Hers Health might be ready to expand.
- Click here to discover the nuances of Hims & Hers Health with our detailed financial health report.
Seize The Opportunity
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Seeking Other Investments?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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- 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 Hims & Hers Health 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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