Stock Analysis

US Stocks Trading At Estimated Discounts In January 2025

NasdaqGS:SRAD
Source: Shutterstock

As the U.S. stock market experiences a mixed performance amid fluctuating economic indicators and interest rate concerns, investors are closely watching for opportunities in undervalued stocks. In this environment, identifying stocks trading at estimated discounts can be crucial, as these may offer potential value despite broader market uncertainties.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Clear Secure (NYSE:YOU)$27.16$53.3949.1%
Dime Community Bancshares (NasdaqGS:DCOM)$31.31$61.5149.1%
Afya (NasdaqGS:AFYA)$15.08$29.7149.2%
Ally Financial (NYSE:ALLY)$35.61$69.7949%
Constellium (NYSE:CSTM)$10.77$21.0248.8%
Sociedad Química y Minera de Chile (NYSE:SQM)$39.04$75.2648.1%
Bilibili (NasdaqGS:BILI)$16.78$32.7348.7%
Vasta Platform (NasdaqGS:VSTA)$2.30$4.4147.8%
South Atlantic Bancshares (OTCPK:SABK)$15.78$30.7148.6%
Coeur Mining (NYSE:CDE)$6.44$12.6649.1%

Click here to see the full list of 170 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Sportradar Group (NasdaqGS:SRAD)

Overview: Sportradar Group AG, along with its subsidiaries, offers sports data services for the sports betting and media industries across various regions including the United Kingdom, the United States, Malta, Switzerland, and internationally, with a market cap of approximately $5.53 billion.

Operations: Sportradar Group AG generates revenue through its sports data services, catering to the sports betting and media sectors across multiple regions including the UK, US, Malta, Switzerland, and globally.

Estimated Discount To Fair Value: 11.8%

Sportradar Group is trading at US$18.56, below its estimated fair value of US$21.04, suggesting it may be undervalued based on cash flows. The company recently reported a significant increase in net income and raised its earnings guidance for 2024, expecting revenue to reach at least €1.09 billion. While revenue growth is forecasted to be moderate, earnings are expected to grow significantly over the next three years, supported by strategic M&A opportunities and innovative product offerings with the NBA.

NasdaqGS:SRAD Discounted Cash Flow as at Jan 2025
NasdaqGS:SRAD Discounted Cash Flow as at Jan 2025

Cadence Bank (NYSE:CADE)

Overview: Cadence Bank offers commercial banking and financial services with a market cap of $6.42 billion.

Operations: The company's revenue segments include Mortgage at $98.11 million, Banking Services at $145.35 million, Community Banking at $1.27 billion, and Corporate Banking at $427.93 million.

Estimated Discount To Fair Value: 46.3%

Cadence Bank, trading at US$35.10, is significantly undervalued with a fair value estimate of US$65.35 based on discounted cash flow analysis. Recent earnings show strong growth in net income to US$136.44 million for Q3 2024 from the previous year’s US$92.58 million, alongside a substantial increase in net interest income. However, profit margins have decreased to 9.3% from 22.9%, and dividend sustainability remains questionable despite consistent payouts.

NYSE:CADE Discounted Cash Flow as at Jan 2025
NYSE:CADE Discounted Cash Flow as at Jan 2025

V.F (NYSE:VFC)

Overview: V.F. Corporation, along with its subsidiaries, operates in the design, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and accessories for men, women, and children across the Americas, Europe, and the Asia-Pacific regions with a market cap of $8.39 billion.

Operations: The company's revenue segments include Work at $857.11 million, Active at $3.83 billion, and Outdoor at $5.41 billion.

Estimated Discount To Fair Value: 22.6%

V.F. Corporation, priced at US$21.54, is undervalued with a fair value estimate of US$27.82 based on discounted cash flow analysis. Despite slower revenue growth forecasts of 1.5% annually compared to the market's 9%, earnings are expected to grow significantly at 59.77% per year, becoming profitable within three years. Recent results show improved net income of US$52.18 million for Q2 2024 from a loss last year, yet dividend coverage remains weak and interest payments are not well covered by earnings.

NYSE:VFC Discounted Cash Flow as at Jan 2025
NYSE:VFC Discounted Cash Flow as at Jan 2025

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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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