3 US Stocks Estimated To Be Undervalued By Up To 47.7%

As the U.S. stock market experiences fluctuations driven by rising Treasury yields and mixed economic data, investors are closely monitoring opportunities that may arise from these shifts. In this environment, identifying undervalued stocks can be crucial for those looking to capitalize on potential market inefficiencies, especially as interest rate expectations continue to evolve.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Clear Secure (NYSE:YOU)	$26.94	$53.02	49.2%
CareTrust REIT (NYSE:CTRE)	$26.42	$51.17	48.4%
Camden National (NasdaqGS:CAC)	$42.01	$83.84	49.9%
Afya (NasdaqGS:AFYA)	$15.03	$29.34	48.8%
Ally Financial (NYSE:ALLY)	$35.78	$69.58	48.6%
HealthEquity (NasdaqGS:HQY)	$98.69	$189.22	47.8%
Constellium (NYSE:CSTM)	$10.47	$20.81	49.7%
TeraWulf (NasdaqCM:WULF)	$6.13	$11.77	47.9%
South Atlantic Bancshares (OTCPK:SABK)	$15.60	$30.73	49.2%
Zillow Group (NasdaqGS:ZG)	$69.67	$136.02	48.8%

Click here to see the full list of 166 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Equitable Holdings (NYSE:EQH)

Overview: Equitable Holdings, Inc. is a diversified financial services company operating worldwide with a market cap of approximately $15.48 billion.

Operations: The company's revenue segments include Asset Management ($4.30 billion), Group Retirement ($1.14 billion), Wealth Management ($1.72 billion), Protection Solutions ($3.31 billion), and Individual Retirement ($3.19 billion).

Estimated Discount To Fair Value: 10.3%

Equitable Holdings is trading at US$49.11, below its estimated fair value of US$54.75, indicating it may be undervalued based on cash flows. Despite recent revenue declines and a net loss in Q3 2024, the company is forecast to achieve robust earnings growth of over 50% annually and become profitable within three years. Revenue growth is expected to outpace the broader U.S. market, although dividend sustainability remains a concern due to inadequate earnings coverage.

• Our expertly prepared growth report on Equitable Holdings implies its future financial outlook may be stronger than recent results.
• Delve into the full analysis health report here for a deeper understanding of Equitable Holdings.

Eli Lilly (NYSE:LLY)

Overview: Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide, with a market cap of approximately $688.92 billion.

Operations: Eli Lilly generates revenue from the discovery, development, manufacturing, marketing, and sales of pharmaceutical products amounting to $40.86 billion.

Estimated Discount To Fair Value: 40.6%

Eli Lilly is trading at US$773.29, significantly below its estimated fair value of US$1,302.73, highlighting potential undervaluation based on cash flows. Despite concerns over debt coverage by operating cash flow, the company has demonstrated strong earnings growth and a high return on equity forecast. Recent FDA approval of Zepbound for obstructive sleep apnea could enhance revenue growth prospects, aligning with forecasts that exceed broader U.S. market expectations in both earnings and revenue growth rates.

• In light of our recent growth report, it seems possible that Eli Lilly's financial performance will exceed current levels.
• Dive into the specifics of Eli Lilly here with our thorough financial health report.

Sociedad Química y Minera de Chile (NYSE:SQM)

Overview: Sociedad Química y Minera de Chile S.A. is a global mining company with a market capitalization of $11.01 billion.

Operations: The company's revenue segments include Potassium ($255.71 million), Industrial Chemicals ($79.76 million), Iodine and Derivatives ($960.89 million), Lithium and Derivatives ($2.50 billion), and Specialty Plant Nutrition ($941.07 million).

Estimated Discount To Fair Value: 47.7%

Sociedad Química y Minera de Chile is trading at US$39.27, well below its estimated fair value of US$75.05, suggesting potential undervaluation based on cash flows. Despite recent declines in sales and net income, earnings are forecast to grow significantly at 45.81% annually over the next three years, with a high return on equity expected. However, debt coverage by operating cash flow remains a concern, and the dividend is not well supported by earnings or free cash flows.

• Upon reviewing our latest growth report, Sociedad Química y Minera de Chile's projected financial performance appears quite optimistic.
• Take a closer look at Sociedad Química y Minera de Chile's balance sheet health here in our report.

Key Takeaways

• Delve into our full catalog of 166 Undervalued US Stocks Based On Cash Flows here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Ready To Venture Into Other Investment Styles?

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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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