Stock Analysis

3 Stocks That May Be Priced Below Their Estimated Worth In March 2025

NYSE:ALLY
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As the U.S. stock market navigates a period of volatility, with major indices like the S&P 500 and Nasdaq attempting to break free from recent losing streaks, investors are keenly observing opportunities that may arise amidst economic uncertainties and steady interest rates. In such an environment, identifying undervalued stocks—those trading below their intrinsic value—can offer potential for growth as markets stabilize and investor sentiment improves.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Dime Community Bancshares (NasdaqGS:DCOM)$28.24$56.2649.8%
MINISO Group Holding (NYSE:MNSO)$20.79$41.1549.5%
Associated Banc-Corp (NYSE:ASB)$22.77$44.9649.4%
German American Bancorp (NasdaqGS:GABC)$38.34$75.3849.1%
Smurfit Westrock (NYSE:SW)$45.71$90.3549.4%
Datadog (NasdaqGS:DDOG)$103.17$206.2450%
Midland States Bancorp (NasdaqGS:MSBI)$18.03$35.6949.5%
Coastal Financial (NasdaqGS:CCB)$85.03$167.6949.3%
Viking Holdings (NYSE:VIK)$39.97$78.5149.1%
Albemarle (NYSE:ALB)$77.03$153.2149.7%

Click here to see the full list of 198 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Trade Desk (NasdaqGM:TTD)

Overview: The Trade Desk, Inc. is a technology company that operates in the United States and internationally, with a market cap of approximately $27.44 billion.

Operations: The company's revenue is primarily generated from its Advertising Technology Platform, which amounted to $2.44 billion.

Estimated Discount To Fair Value: 42%

Trade Desk's stock appears undervalued, trading at US$55.85 against a fair value estimate of US$96.33, suggesting potential upside based on discounted cash flow analysis. Despite recent volatility and legal challenges, the company forecasts robust earnings growth of 22.3% annually over three years, outpacing the market. Recent strategic partnerships and leadership appointments aim to enhance operational efficiency and market reach, potentially supporting future revenue growth above the broader U.S. market rate.

NasdaqGM:TTD Discounted Cash Flow as at Mar 2025
NasdaqGM:TTD Discounted Cash Flow as at Mar 2025

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 $1.62 billion from Insurance operations, $571 million from Corporate Finance Operations, and $4.67 billion from Automotive Finance Operations.

Estimated Discount To Fair Value: 18.6%

Ally Financial is trading at US$36.12, below its estimated fair value of US$44.36, indicating potential undervaluation based on cash flows. The company's earnings are forecast to grow significantly at 28.1% annually over three years, surpassing the broader U.S. market growth rate of 13.9%. Despite a decline in profit margins from last year and recent fixed-income offerings totaling several million dollars, revenue growth remains robust at 10.2% annually, outpacing the market's average rate.

NYSE:ALLY Discounted Cash Flow as at Mar 2025
NYSE:ALLY Discounted Cash Flow as at Mar 2025

Jabil (NYSE:JBL)

Overview: Jabil Inc. offers manufacturing services and solutions globally, with a market cap of approximately $15.28 billion.

Operations: Jabil's revenue segments include Electronics Manufacturing Services at $19.03 billion and Diversified Manufacturing Services at $16.99 billion.

Estimated Discount To Fair Value: 38.3%

Jabil is trading at US$143.83, significantly below its estimated fair value of US$233.01, suggesting undervaluation based on cash flows. Despite a decline in profit margins and revenue growth forecasted to be slower than the market, earnings are expected to grow substantially at 26.5% annually over three years, outpacing the U.S. market's 13.9%. Recent insider selling and high debt levels present challenges, but strategic expansions like new factories may offer long-term benefits.

NYSE:JBL Discounted Cash Flow as at Mar 2025
NYSE:JBL Discounted Cash Flow as at Mar 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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