US Stocks Priced Below Estimated Value In January 2025

As January 2025 draws to a close, U.S. stock markets have shown resilience, with major indices like the Dow Jones Industrial Average and S&P 500 closing higher amid a wave of earnings reports and economic data. This environment offers investors opportunities to explore stocks that may be priced below their estimated value, particularly as they reassess strategies in light of evolving market dynamics and technological advancements such as AI.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
First National (NasdaqCM:FXNC)	$25.16	$48.65	48.3%
Dime Community Bancshares (NasdaqGS:DCOM)	$30.84	$59.21	47.9%
AGNC Investment (NasdaqGS:AGNC)	$10.08	$19.70	48.8%
Array Technologies (NasdaqGM:ARRY)	$7.47	$14.47	48.4%
Privia Health Group (NasdaqGS:PRVA)	$22.54	$44.59	49.4%
Coastal Financial (NasdaqGS:CCB)	$89.93	$172.68	47.9%
Verra Mobility (NasdaqCM:VRRM)	$26.73	$51.91	48.5%
Ubiquiti (NYSE:UI)	$398.76	$773.27	48.4%
BeiGene (NasdaqGS:ONC)	$226.89	$439.58	48.4%
QuinStreet (NasdaqGS:QNST)	$24.44	$47.65	48.7%

Click here to see the full list of 176 stocks from our Undervalued US Stocks Based On Cash Flows screener.

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

AGNC Investment (NasdaqGS:AGNC)

Overview: AGNC Investment Corp. is a company that supplies private capital to the U.S. housing market, with a market cap of approximately $8.82 billion.

Operations: The company generates revenue primarily through its REIT - Mortgage segment, which amounts to $973 million.

Estimated Discount To Fair Value: 48.8%

AGNC Investment is trading significantly below its estimated fair value of US$19.7, with its current price at US$10.08, suggesting potential undervaluation based on cash flows. Despite past shareholder dilution and challenges in covering debt with operating cash flow, AGNC's earnings grew by a very large margin last year and are forecast to grow substantially over the next three years. However, its dividend yield of 14.29% isn't well covered by earnings or free cash flows, indicating sustainability concerns.

• According our earnings growth report, there's an indication that AGNC Investment might be ready to expand.
• Get an in-depth perspective on AGNC Investment's balance sheet by reading our health report here.

Kanzhun (NasdaqGS:BZ)

Overview: Kanzhun Limited, with a market cap of $6.41 billion, offers online recruitment services in the People's Republic of China through its subsidiaries.

Operations: The company's revenue primarily comes from its Internet Information Providers segment, generating CN¥7.11 billion.

Estimated Discount To Fair Value: 43.9%

Kanzhun is trading at a significant discount to its estimated fair value of US$27.4, with a current price of US$15.37, highlighting potential undervaluation based on cash flows. Recent earnings showed substantial growth, with net income increasing from CNY 767.98 million to CNY 1,135.06 million year-on-year for the first nine months of 2024. Forecasted earnings growth is robust at approximately 25% annually over the next three years, outpacing the broader U.S. market expectations.

• Insights from our recent growth report point to a promising forecast for Kanzhun's business outlook.
• Take a closer look at Kanzhun's balance sheet health here in our report.

Renasant (NYSE:RNST)

Overview: Renasant Corporation is a bank holding company for Renasant Bank, offering financial, wealth management, fiduciary, and insurance services to retail and commercial customers, with a market cap of approximately $2.41 billion.

Operations: Renasant Corporation generates revenue through its diverse offerings in financial services, wealth management, fiduciary duties, and insurance solutions catering to both retail and commercial clients.

Estimated Discount To Fair Value: 31.2%

Renasant is trading at US$39.2, well below its estimated fair value of US$56.96, indicating potential undervaluation based on cash flows. Recent earnings reports show strong performance with net income rising from US$28.12 million to US$44.75 million year-on-year for Q4 2024. Earnings are forecasted to grow significantly at 27.8% annually, surpassing the broader U.S. market growth expectations, although future return on equity is projected to be modest at 7.9%.

• Our comprehensive growth report raises the possibility that Renasant is poised for substantial financial growth.
• Click to explore a detailed breakdown of our findings in Renasant's balance sheet health report.

Where To Now?

• Investigate our full lineup of 176 Undervalued US Stocks Based On Cash Flows right here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Contemplating Other Strategies?

• 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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