Stock Analysis

3 US Stocks That May Be Up To 33.6% Below Intrinsic Value Estimates

NYSE:PSTG
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As the S&P 500 flirts with record highs and major indexes post weekly gains, investors are keenly observing the market for opportunities amidst mixed economic signals such as declining retail sales and fluctuating treasury yields. In this environment, identifying stocks that may be undervalued relative to their intrinsic value can offer potential opportunities for those looking to capitalize on market inefficiencies.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Provident Financial Services (NYSE:PFS)$18.65$36.9949.6%
Atour Lifestyle Holdings (NasdaqGS:ATAT)$30.80$58.9047.7%
Old National Bancorp (NasdaqGS:ONB)$23.89$45.7147.7%
Sandy Spring Bancorp (NasdaqGS:SASR)$33.65$64.4947.8%
Incyte (NasdaqGS:INCY)$70.42$134.8947.8%
Array Technologies (NasdaqGM:ARRY)$6.79$13.5349.8%
Constellium (NYSE:CSTM)$9.34$18.3049%
First Advantage (NasdaqGS:FA)$19.93$38.1247.7%
Fluence Energy (NasdaqGS:FLNC)$6.43$12.6149%
Kyndryl Holdings (NYSE:KD)$41.79$82.1049.1%

Click here to see the full list of 160 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Bilibili (NasdaqGS:BILI)

Overview: Bilibili Inc. offers online entertainment services targeting young generations in China and has a market cap of approximately $9.14 billion.

Operations: The company's revenue from Internet Information Providers amounts to CN¥25.45 billion.

Estimated Discount To Fair Value: 23.8%

Bilibili, trading at US$21.99, is undervalued based on discounted cash flow analysis with a fair value estimate of US$28.84. Despite significant insider selling recently, the stock is priced 23.8% below its estimated fair value and is expected to become profitable within three years, outpacing average market growth rates. However, revenue growth forecasts of 10.2% annually are slower than desired but still exceed the broader US market's 8.9%.

NasdaqGS:BILI Discounted Cash Flow as at Feb 2025
NasdaqGS:BILI Discounted Cash Flow as at Feb 2025

Levi Strauss (NYSE:LEVI)

Overview: Levi Strauss & Co. designs, markets, and sells apparel and related accessories for men, women, and children both in the United States and internationally, with a market cap of approximately $7.23 billion.

Operations: The company's revenue segments include $1.08 billion from Asia, $1.62 billion from Europe, and $3.20 billion from the Americas.

Estimated Discount To Fair Value: 11.6%

Levi Strauss, priced at US$18.27, is trading 11.6% below its fair value estimate of US$20.67, suggesting it may be undervalued based on cash flows. Despite slower revenue growth forecasts of 2.8% annually compared to the broader US market, Levi's earnings are projected to grow significantly at 33.5% per year over the next three years, outpacing market averages. Recent strategic leadership changes aim to enhance operational efficiency and drive long-term profitability improvements.

NYSE:LEVI Discounted Cash Flow as at Feb 2025
NYSE:LEVI Discounted Cash Flow as at Feb 2025

Pure Storage (NYSE:PSTG)

Overview: Pure Storage, Inc. provides data storage and management technologies, products, and services globally with a market cap of approximately $22.12 billion.

Operations: The company generates revenue primarily from its computer storage devices segment, which accounts for approximately $3.08 billion.

Estimated Discount To Fair Value: 33.6%

Pure Storage, trading at US$67.80, is significantly undervalued based on cash flows with a fair value estimate of US$102.06. Its earnings are projected to grow substantially at 49.8% per year, surpassing market averages. Recent strategic collaborations with Micron and Kioxia enhance its data storage solutions, focusing on high performance and energy efficiency for hyperscale environments, which could improve cost efficiency and reduce environmental impact in modern data centers.

NYSE:PSTG Discounted Cash Flow as at Feb 2025
NYSE:PSTG Discounted Cash Flow as at Feb 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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