Stock Analysis

Discover 3 US Stocks That May Be Trading Below Estimated Value

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As the U.S. stock market experiences a pause in its recent rally, with technology shares leading a slight decline, investors are closely monitoring economic data and Federal Reserve signals for future direction. In such an environment, identifying stocks that may be trading below their estimated value can offer potential opportunities for those looking to capitalize on market fluctuations.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Victory Capital Holdings (NasdaqGS:VCTR)$72.03$142.6949.5%
NBT Bancorp (NasdaqGS:NBTB)$50.08$99.9349.9%
UMB Financial (NasdaqGS:UMBF)$126.05$242.9448.1%
West Bancorporation (NasdaqGS:WTBA)$23.99$46.8248.8%
Five Star Bancorp (NasdaqGS:FSBC)$33.16$63.8848.1%
Symbotic (NasdaqGM:SYM)$23.995$47.0549%
Privia Health Group (NasdaqGS:PRVA)$21.66$43.1649.8%
South Atlantic Bancshares (OTCPK:SABK)$15.50$30.2648.8%
Intuitive Machines (NasdaqGM:LUNR)$14.45$28.5949.5%
Snap (NYSE:SNAP)$11.61$22.7549%

Click here to see the full list of 191 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Crown Holdings (NYSE:CCK)

Overview: Crown Holdings, Inc., along with its subsidiaries, operates in the packaging industry both in the United States and internationally, with a market cap of approximately $10.90 billion.

Operations: The company's revenue segments include Americas Beverage at $5.21 billion, European Beverage at $2.01 billion, Transit Packaging at $2.16 billion, Asia Pacific at $1.17 billion, and Other Segments contributing $1.30 billion in revenue.

Estimated Discount To Fair Value: 43.6%

Crown Holdings is trading at US$93.02, significantly below its estimated fair value of US$164.94, suggesting it may be undervalued based on cash flows. Despite a recent net loss and decreased profit margins, the company has raised its earnings guidance for 2024 and forecasts robust annual profit growth of 40.6%. While revenue growth is slower than the market average, Crown's strategic share buybacks and dividend affirmations demonstrate financial resilience amidst high debt levels.

NYSE:CCK Discounted Cash Flow as at Nov 2024

SharkNinja (NYSE:SN)

Overview: SharkNinja, Inc. is a product design and technology company that provides various consumer solutions globally, with a market cap of approximately $13.92 billion.

Operations: The company's revenue segment includes Appliance & Tool, generating approximately $5.12 billion.

Estimated Discount To Fair Value: 35.9%

SharkNinja's stock, trading at US$98.07, is considerably below its estimated fair value of US$152.91, highlighting potential undervaluation based on cash flows. The company reported a substantial increase in net income for Q3 2024 and raised its earnings guidance for the year, reflecting strong financial performance. Despite concerns over debt coverage by operating cash flow, SharkNinja's earnings are forecast to grow significantly faster than the broader U.S. market over the next three years.

NYSE:SN Discounted Cash Flow as at Nov 2024

WEX (NYSE:WEX)

Overview: WEX Inc. operates a commerce platform both in the United States and internationally, with a market cap of approximately $7.40 billion.

Operations: The company's revenue segments include Benefits at $730.70 million, Mobility at $1.41 billion, and Corporate Payments at $518.50 million.

Estimated Discount To Fair Value: 45.3%

WEX is trading at US$189.8, considerably below its estimated fair value of US$347.26, reflecting potential undervaluation based on cash flows. Recent earnings reports show a significant increase in net income for Q3 2024, with earnings expected to grow significantly faster than the U.S. market over the next three years. The company's strategic initiatives, including AI-driven benefits solutions and an expanded Medicare Advantage marketplace, may enhance future cash flow prospects despite slower revenue growth forecasts compared to the market.

NYSE:WEX Discounted Cash Flow as at Nov 2024

Taking Advantage

  • Delve into our full catalog of 191 Undervalued US Stocks Based On Cash Flows here.
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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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