3 Stocks That May Be Trading Below Their Estimated Value

In the last week, the United States market has stayed flat, but it has shown an 11% rise over the past 12 months with earnings forecasted to grow by 14% annually. In this context of steady growth and optimistic earnings projections, identifying stocks that may be trading below their estimated value can present potential opportunities for investors seeking to capitalize on market inefficiencies.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Berkshire Hills Bancorp (NYSE:BHLB)	$26.27	$51.54	49%
Quaker Chemical (NYSE:KWR)	$107.26	$210.06	48.9%
Super Group (SGHC) (NYSE:SGHC)	$8.44	$16.54	49%
KBR (NYSE:KBR)	$55.33	$108.40	49%
Horizon Bancorp (NasdaqGS:HBNC)	$15.69	$30.68	48.9%
Insteel Industries (NYSE:IIIN)	$36.65	$72.23	49.3%
First Reliance Bancshares (OTCPK:FSRL)	$9.45	$18.49	48.9%
Carvana (NYSE:CVNA)	$302.29	$586.89	48.5%
Verra Mobility (NasdaqCM:VRRM)	$24.53	$47.91	48.8%
Mobileye Global (NasdaqGS:MBLY)	$16.05	$31.07	48.3%

Click here to see the full list of 171 stocks from our Undervalued US Stocks Based On Cash Flows screener.

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

Chagee Holdings (NasdaqGS:CHA)

Overview: Chagee Holdings Limited, with a market cap of $5.48 billion, owns, operates, and franchises teahouses under the CHAGEE brand in China and internationally.

Operations: Chagee Holdings Limited generates revenue of CN¥12.41 billion through its restaurant operations.

Estimated Discount To Fair Value: 47.2%

Chagee Holdings is trading at US$29.16, significantly below its estimated fair value of US$55.25, indicating potential undervaluation based on cash flows. Its earnings are forecast to grow by 28.7% annually, outpacing the broader U.S. market's growth rate of 14.3%. Recent developments include a successful IPO raising over $411 million and expansion into the U.S., which could enhance revenue prospects despite shares being highly illiquid currently.

• Upon reviewing our latest growth report, Chagee Holdings' projected financial performance appears quite optimistic.
• Take a closer look at Chagee Holdings' balance sheet health here in our report.

Natera (NasdaqGS:NTRA)

Overview: Natera, Inc. is a diagnostics company that offers molecular testing services globally and has a market cap of approximately $20.93 billion.

Operations: The company's revenue is primarily generated from the development and commercialization of molecular testing services, amounting to $1.83 billion.

Estimated Discount To Fair Value: 17%

Natera, trading at $154.53, is undervalued compared to its estimated fair value of $186.18. The company's revenue for Q1 2025 rose to $501.83 million from $367.74 million a year ago, with a reduced net loss of $66.94 million from the previous year's $67.6 million loss, indicating improving financial health despite ongoing losses. Natera's innovative products like Signatera and Prospera are gaining traction in medical diagnostics, enhancing future cash flow potential amidst forecasted profitability within three years.

• Our expertly prepared growth report on Natera implies its future financial outlook may be stronger than recent results.
• Click here to discover the nuances of Natera with our detailed financial health report.

Estée Lauder Companies (NYSE:EL)

Overview: The Estée Lauder Companies Inc. is a global manufacturer, marketer, and seller of skincare, makeup, fragrance, and hair care products with a market cap of approximately $23.51 billion.

Operations: The company's revenue is primarily derived from skin care at $7.29 billion, followed by makeup at $4.33 billion, fragrance at $2.47 billion, and hair care products contributing $589 million.

Estimated Discount To Fair Value: 38.5%

Estée Lauder, trading at US$66.08, is undervalued relative to its fair value estimate of US$107.4 despite a challenging fiscal environment marked by declining sales and net income. The company faces headwinds from weak consumer sentiment in key markets like China and Korea, impacting travel retail sales. However, Estée Lauder's strategic focus on innovation and collaborations in biotechnology could drive future profitability as earnings are forecasted to grow significantly over the next three years.

• Our earnings growth report unveils the potential for significant increases in Estée Lauder Companies' future results.
• Unlock comprehensive insights into our analysis of Estée Lauder Companies stock in this financial health report.

Turning Ideas Into Actions

• Navigate through the entire inventory of 171 Undervalued US Stocks Based On Cash Flows here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
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Contemplating Other Strategies?

• 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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