3 US Stocks Estimated Up To 48.1% Undervalued Based On Intrinsic Value Estimates

As U.S. markets navigate the complexities of rising inflation and fluctuating interest rates, investors are increasingly focused on identifying opportunities that may be undervalued in the current economic climate. In this context, understanding a stock's intrinsic value becomes crucial for discerning which investments might offer potential value despite broader market volatility.

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)	$18.71	$37.36	49.9%
Celsius Holdings (NasdaqCM:CELH)	$21.28	$42.43	49.8%
Incyte (NasdaqGS:INCY)	$69.05	$135.32	49%
Sandy Spring Bancorp (NasdaqGS:SASR)	$33.52	$64.66	48.2%
Similarweb (NYSE:SMWB)	$11.87	$23.62	49.7%
Datadog (NasdaqGS:DDOG)	$148.09	$287.04	48.4%
Constellium (NYSE:CSTM)	$9.40	$18.32	48.7%
First Advantage (NasdaqGS:FA)	$19.69	$38.21	48.5%
Kyndryl Holdings (NYSE:KD)	$41.15	$81.37	49.4%
SolarEdge Technologies (NasdaqGS:SEDG)	$13.29	$25.67	48.2%

Click here to see the full list of 169 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Mr. Cooper Group (NasdaqCM:COOP)

Overview: Mr. Cooper Group Inc. operates as a non-bank servicer of residential mortgage loans in the United States and has a market capitalization of approximately $6.87 billion.

Operations: The company's revenue segments include $1.48 billion from Servicing and $416 million from Originations.

Estimated Discount To Fair Value: 44.2%

Mr. Cooper Group, with recent Q4 2024 earnings of US$204 million, is trading at US$106.71—44.2% below its estimated fair value of US$191.31—highlighting its potential undervaluation based on cash flows. Despite revenue growth forecasts slower than 20% annually, expected earnings growth of 22.3% per year outpaces the broader U.S. market's average and suggests robust future performance, though debt coverage by operating cash flow remains a concern.

• Our comprehensive growth report raises the possibility that Mr. Cooper Group is poised for substantial financial growth.
• Click here and access our complete balance sheet health report to understand the dynamics of Mr. Cooper Group.

Afya (NasdaqGS:AFYA)

Overview: Afya Limited is a Brazilian medical education group with a market cap of $1.52 billion.

Operations: The company's revenue segments include Undergrad at R$2.78 billion and Continuing Education at R$164.55 million, with a Segment Adjustment of R$244.29 million.

Estimated Discount To Fair Value: 48.1%

Afya is trading at US$16.82, significantly below its estimated fair value of US$32.42, suggesting potential undervaluation based on cash flows. Earnings are forecast to grow 21.8% annually, outpacing the U.S. market average of 14.6%. Recent earnings reports show strong performance with net income growth and increased revenue for Q3 2024 compared to the previous year, although revenue growth is expected to be slower than 20% per year going forward.

• The analysis detailed in our Afya growth report hints at robust future financial performance.
• Take a closer look at Afya's balance sheet health here in our report.

Gilead Sciences (NasdaqGS:GILD)

Overview: Gilead Sciences, Inc. is a biopharmaceutical company that discovers, develops, and commercializes medicines for unmet medical needs globally, with a market cap of approximately $119.82 billion.

Operations: The company's revenue segments include its biopharmaceutical operations, which focus on discovering, developing, and commercializing medicines to address unmet medical needs across the United States, Europe, and internationally.

Estimated Discount To Fair Value: 44.5%

Gilead Sciences is trading at US$103.31, significantly below its estimated fair value of US$186.13, indicating potential undervaluation based on cash flows. Despite a challenging year with reduced net profit margins, the company forecasts earnings growth of 23.1% annually over the next three years, surpassing the U.S. market average of 14.5%. Recent announcements include increased dividends and strategic partnerships aimed at expanding treatment offerings in inflammatory diseases and oncology sectors.

• Insights from our recent growth report point to a promising forecast for Gilead Sciences' business outlook.
• Unlock comprehensive insights into our analysis of Gilead Sciences stock in this financial health report.

Next Steps

• Explore the 169 names from our Undervalued US Stocks Based On Cash Flows screener here.
• 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.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Interested In Other Possibilities?

• 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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