3 US Stocks That Might Be Trading Below Their Estimated Value

As the U.S. stock market continues its rally, with the Dow Jones Industrial Average and S&P 500 reaching new heights, investors are keenly observing opportunities that might be flying under the radar. In such a robust market environment, identifying stocks that may be trading below their estimated value can provide potential for growth as these equities catch up to their intrinsic worth.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Clear Secure (NYSE:YOU)	$27.08	$53.36	49.2%
NBT Bancorp (NasdaqGS:NBTB)	$50.99	$99.93	49%
First National (NasdaqCM:FXNC)	$23.66	$46.63	49.3%
Peoples Financial Services (NasdaqGS:PFIS)	$58.76	$115.39	49.1%
Synovus Financial (NYSE:SNV)	$58.67	$115.67	49.3%
Equity Bancshares (NYSE:EQBK)	$49.21	$98.42	50%
Pinterest (NYSE:PINS)	$30.51	$59.52	48.7%
South Atlantic Bancshares (OTCPK:SABK)	$15.42	$30.27	49.1%
Nutanix (NasdaqGS:NTNX)	$72.80	$143.80	49.4%
Snap (NYSE:SNAP)	$11.60	$22.72	49%

Click here to see the full list of 195 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

AppLovin (NasdaqGS:APP)

Overview: AppLovin Corporation develops a software-based platform that aids advertisers in enhancing the marketing and monetization of their content both in the United States and internationally, with a market cap of approximately $111.86 billion.

Operations: The company's revenue is derived from two main segments: Apps, generating $1.49 billion, and the Software Platform, contributing $2.80 billion.

Estimated Discount To Fair Value: 15.7%

AppLovin's stock appears undervalued based on cash flows, trading at US$319.59, below its estimated fair value of US$379.05. Despite high debt levels and recent insider selling, the company shows strong earnings growth prospects at 31.5% annually, outpacing the market average. Recent financial results highlight significant profit increases with net income reaching US$434.42 million for Q3 2024, supported by strategic moves like a $999.62 million fixed-income offering to bolster financial flexibility amidst volatile share prices.

• In light of our recent growth report, it seems possible that AppLovin's financial performance will exceed current levels.
• Take a closer look at AppLovin's balance sheet health here in our report.

Pegasystems (NasdaqGS:PEGA)

Overview: Pegasystems Inc. is a global company that develops, markets, licenses, hosts, and supports enterprise software solutions across various regions including the Americas, Europe, the Middle East, Africa, and Asia-Pacific with a market cap of approximately $7.85 billion.

Operations: The company's revenue primarily comes from its Software & Programming segment, which generated approximately $1.48 billion.

Estimated Discount To Fair Value: 31.3%

Pegasystems is trading at US$95.33, significantly undervalued compared to its estimated fair value of US$138.67. Despite recent revenue decline and shareholder dilution, the company projects robust earnings growth of 23.9% annually, surpassing market averages. The introduction of AI-driven capabilities in Pega GenAI Blueprint supports modernization efforts and could enhance cash flow generation by reducing technical debt and optimizing workflows, although these initiatives require significant resources and time to implement effectively.

• Our expertly prepared growth report on Pegasystems implies its future financial outlook may be stronger than recent results.
• Unlock comprehensive insights into our analysis of Pegasystems stock in this financial health report.

Equifax (NYSE:EFX)

Overview: Equifax Inc. is a data, analytics, and technology company with a market cap of approximately $31.43 billion.

Operations: The company's revenue is derived from three main segments: International at $1.34 billion, Workforce Solutions at $2.40 billion, and U.S. Information Solutions at $1.85 billion.

Estimated Discount To Fair Value: 36.4%

Equifax is trading at US$263.89, significantly below its estimated fair value of US$415.18, indicating potential undervaluation based on cash flows. The company projects robust earnings growth of 26.2% annually, outpacing the broader U.S. market's forecasted growth rate. Recent strategic moves include bolt-on acquisitions focused on core business enhancement and partnerships like the expanded collaboration with Google Cloud to leverage data insights, which could bolster future revenue streams and operational efficiencies despite high debt levels.

• Our earnings growth report unveils the potential for significant increases in Equifax's future results.
• Click here and access our complete balance sheet health report to understand the dynamics of Equifax.

Summing It All Up

• Access the full spectrum of 195 Undervalued US Stocks Based On Cash Flows by clicking on this link.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Looking For Alternative Opportunities?

• 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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