3 US Stocks That May Be Trading Below Their Estimated Value In December 2024

As the United States stock market navigates a period of mixed performances, with major indices like the Dow Jones and S&P 500 poised for weekly gains despite recent downturns, investors are keenly observing opportunities that may arise from these fluctuations. In such an environment, identifying stocks that are potentially undervalued can be crucial for those looking to capitalize on discrepancies between current trading prices and estimated intrinsic values.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Clear Secure (NYSE:YOU)	$27.28	$53.16	48.7%
Oddity Tech (NasdaqGM:ODD)	$43.48	$84.40	48.5%
First National (NasdaqCM:FXNC)	$24.05	$46.63	48.4%
Sandy Spring Bancorp (NasdaqGS:SASR)	$34.58	$68.97	49.9%
Western Alliance Bancorporation (NYSE:WAL)	$84.66	$165.14	48.7%
HealthEquity (NasdaqGS:HQY)	$97.41	$189.22	48.5%
Progress Software (NasdaqGS:PRGS)	$66.395	$129.48	48.7%
Freshpet (NasdaqGM:FRPT)	$146.06	$283.12	48.4%
South Atlantic Bancshares (OTCPK:SABK)	$15.20	$29.97	49.3%
Paycor HCM (NasdaqGS:PYCR)	$19.33	$38.52	49.8%

Click here to see the full list of 179 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Ally Financial (NYSE:ALLY)

Overview: Ally Financial Inc. is a digital financial-services company offering a range of digital financial products and services in the United States, Canada, and Bermuda, with a market cap of approximately $10.89 billion.

Operations: The company's revenue segments include Automotive Finance Operations at $3.70 billion, Insurance operations at $1.70 billion, Corporate Finance Operations at $504 million, and Mortgage Finance operations at $229 million.

Estimated Discount To Fair Value: 36.9%

Ally Financial is trading at US$36.01, significantly below its estimated fair value of US$57.08, suggesting it may be undervalued based on cash flows. Earnings are projected to grow substantially at 27.7% annually, outpacing the broader U.S. market's growth rate of 15.3%. Recent debt offerings totaling $1 billion could enhance financial flexibility but also increase leverage risks as the company navigates potential strategic shifts like selling its credit card unit amidst industry competition pressures.

• Our comprehensive growth report raises the possibility that Ally Financial is poised for substantial financial growth.
• Navigate through the intricacies of Ally Financial with our comprehensive financial health report here.

Corpay (NYSE:CPAY)

Overview: Corpay, Inc. is a payments company that facilitates the management of vehicle-related expenses, lodging expenses, and corporate payments for businesses and consumers across the United States, Brazil, the United Kingdom, and internationally with a market cap of $24.14 billion.

Operations: Corpay's revenue is primarily derived from vehicle payments at $2.01 billion, corporate payments at $1.13 billion, and lodging payments at $487.62 million.

Estimated Discount To Fair Value: 27.3%

Corpay, Inc. is trading at US$345.28, considerably below its estimated fair value of US$475.10, indicating potential undervaluation based on cash flows. Earnings are expected to grow at 15.7% annually, surpassing the U.S. market average of 15.3%. Despite a high debt level and recent executive changes including the CFO's departure, strategic partnerships like with UFC and AbbeyCross could bolster revenue growth and enhance global FX capabilities in emerging markets.

• The growth report we've compiled suggests that Corpay's future prospects could be on the up.
• Click here to discover the nuances of Corpay with our detailed financial health report.

Lamb Weston Holdings (NYSE:LW)

Overview: Lamb Weston Holdings, Inc. is involved in the production, distribution, and marketing of frozen potato products across the United States, Canada, Mexico, and internationally with a market cap of $9.08 billion.

Operations: The company's revenue segments include $2.09 billion from international markets and $4.24 billion from North America.

Estimated Discount To Fair Value: 47.9%

Lamb Weston Holdings is trading at US$65.28, significantly below its estimated fair value of US$125.18, suggesting potential undervaluation based on cash flows. Despite a challenging financial position with debt not well covered by operating cash flow and recent lowered earnings guidance, the company's earnings are forecast to grow significantly over the next three years. Recent leadership changes and activist investor pressure for strategic alternatives could influence future performance and shareholder value.

• The analysis detailed in our Lamb Weston Holdings growth report hints at robust future financial performance.
• Delve into the full analysis health report here for a deeper understanding of Lamb Weston Holdings.

Next Steps

• Unlock more gems! Our Undervalued US Stocks Based On Cash Flows screener has unearthed 176 more companies for you to explore.Click here to unveil our expertly curated list of 179 Undervalued US Stocks Based On Cash Flows.
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Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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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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