Stock Analysis
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3 US Stocks Estimated To Be Trading At Discounts Of Over 16.7%
Reviewed by Simply Wall St
As the U.S. stock market experiences fluctuations amid ongoing discussions about inflation and interest rate adjustments, investors are keeping a close watch on economic indicators that could influence future Federal Reserve decisions. With major indices like the S&P 500 and Nasdaq Composite recently reaching record highs, identifying stocks that may be trading at a discount becomes particularly appealing for those looking to capitalize on potential value opportunities in this volatile environment. Understanding what constitutes an undervalued stock is crucial; it often involves assessing a company's fundamentals against its current market price, especially during periods of heightened market activity or regulatory developments.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
NBT Bancorp (NasdaqGS:NBTB) | $50.26 | $99.93 | 49.7% |
UMB Financial (NasdaqGS:UMBF) | $123.67 | $243.25 | 49.2% |
Hims & Hers Health (NYSE:HIMS) | $32.63 | $64.70 | 49.6% |
West Bancorporation (NasdaqGS:WTBA) | $23.32 | $46.38 | 49.7% |
Business First Bancshares (NasdaqGS:BFST) | $28.19 | $54.93 | 48.7% |
Equity Bancshares (NYSE:EQBK) | $47.26 | $92.07 | 48.7% |
U.S. Physical Therapy (NYSE:USPH) | $96.50 | $187.03 | 48.4% |
Vasta Platform (NasdaqGS:VSTA) | $2.18 | $4.31 | 49.4% |
First Advantage (NasdaqGS:FA) | $20.00 | $39.00 | 48.7% |
Marcus & Millichap (NYSE:MMI) | $41.51 | $81.04 | 48.8% |
Let's explore several standout options from the results in the screener.
Intapp (NasdaqGS:INTA)
Overview: Intapp, Inc., through its subsidiary Integration Appliance, Inc., offers AI-powered solutions across the United States, the United Kingdom, and internationally with a market cap of $5.14 billion.
Operations: The company generates revenue from its Software & Programming segment, amounting to $447.75 million.
Estimated Discount To Fair Value: 16.7%
Intapp is trading at US$67.06, below its estimated fair value of US$80.51, suggesting it may be undervalued based on cash flows. The company reported Q1 2025 revenue of US$118.81 million and a reduced net loss compared to the previous year. Recent client wins with firms like Milsted Langdon enhance Intapp's collaboration solutions' appeal, potentially supporting future cash flow improvements despite past shareholder dilution and slower anticipated revenue growth than industry leaders.
- Our earnings growth report unveils the potential for significant increases in Intapp's future results.
- Unlock comprehensive insights into our analysis of Intapp stock in this financial health report.
Patria Investments (NasdaqGS:PAX)
Overview: Patria Investments Limited is a private market investment firm specializing in Latin American investments, with a market cap of approximately $1.84 billion.
Operations: The company generates revenue primarily through its Asset Management segment, which amounted to $328.72 million.
Estimated Discount To Fair Value: 23%
Patria Investments is trading at US$12.55, below its estimated fair value of US$16.30, indicating potential undervaluation based on cash flows. Despite a significant drop in net income from US$18.5 million to US$1.5 million year-over-year for Q3 2024, earnings are projected to grow substantially over the next three years. However, the dividend yield of 7.84% is not well covered by earnings or free cash flows, and recent shareholder dilution remains a concern.
- Our comprehensive growth report raises the possibility that Patria Investments is poised for substantial financial growth.
- Click here to discover the nuances of Patria Investments with our detailed financial health report.
Eli Lilly (NYSE:LLY)
Overview: Eli Lilly and Company is a global pharmaceutical company focused on discovering, developing, and marketing human pharmaceuticals, with a market cap of approximately $744.40 billion.
Operations: The company generates revenue of $40.86 billion from the discovery, development, manufacturing, marketing, and sales of pharmaceutical products worldwide.
Estimated Discount To Fair Value: 39.7%
Eli Lilly is trading at US$803.58, significantly below its estimated fair value of US$1,332.14, suggesting potential undervaluation based on cash flows. The company's earnings grew 67.8% over the past year and are expected to increase by 29.28% annually over the next three years, outpacing the broader U.S market growth rate of 15.5%. Recent strategic initiatives include a US$3 billion expansion in Wisconsin and a new US$15 billion share repurchase program without expiration date limits.
- In light of our recent growth report, it seems possible that Eli Lilly's financial performance will exceed current levels.
- Click here and access our complete balance sheet health report to understand the dynamics of Eli Lilly.
Summing It All Up
- Explore the 190 names from our Undervalued US Stocks Based On Cash Flows screener here.
- Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
- Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
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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About NasdaqGS:PAX
Patria Investments
Operates as a private market investment firm focused on investing in Latin America.