Stock Analysis

3 US Stocks Estimated To Be 24.7% To 47.4% Below Their Intrinsic Value

NasdaqGS:INTU
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As the Nasdaq Composite reaches new record highs and investors eagerly anticipate earnings reports from major tech companies, the U.S. stock market is experiencing a period of heightened activity and optimism. Amidst this buoyant environment, identifying stocks that are currently undervalued can offer potential opportunities for investors looking to capitalize on discrepancies between market prices and intrinsic values.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Bank of Marin Bancorp (NasdaqCM:BMRC)$22.90$44.3548.4%
California Resources (NYSE:CRC)$52.09$104.0950%
Atlanticus Holdings (NasdaqGS:ATLC)$37.65$72.4948.1%
Vita Coco Company (NasdaqGS:COCO)$30.78$60.6149.2%
Range Resources (NYSE:RRC)$31.00$60.0648.4%
WEX (NYSE:WEX)$173.16$346.0950%
Vitesse Energy (NYSE:VTS)$24.94$49.2749.4%
ChromaDex (NasdaqCM:CDXC)$3.62$7.1549.4%
Reddit (NYSE:RDDT)$81.74$161.2449.3%
Rapid7 (NasdaqGM:RPD)$41.60$81.3848.9%

Click here to see the full list of 195 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Advanced Micro Devices (NasdaqGS:AMD)

Overview: Advanced Micro Devices, Inc. is a global semiconductor company with a market capitalization of approximately $258.83 billion.

Operations: The company generates revenue from four main segments: Client ($5.77 billion), Gaming ($4.44 billion), Embedded ($4.01 billion), and Data Center ($9.05 billion).

Estimated Discount To Fair Value: 24.7%

Advanced Micro Devices appears undervalued based on cash flows, trading at US$166.25, below its estimated fair value of US$220.89. Recent earnings reports show significant growth; Q3 sales rose to US$6.82 billion from US$5.8 billion last year, with net income increasing to US$771 million from US$299 million. The company expects Q4 revenue of approximately $7.5 billion, indicating strong ongoing performance and potential for continued profitability improvements in the near term.

NasdaqGS:AMD Discounted Cash Flow as at Oct 2024
NasdaqGS:AMD Discounted Cash Flow as at Oct 2024

Intuit (NasdaqGS:INTU)

Overview: Intuit Inc. is a company that offers financial management, compliance, and marketing products and services in the United States, with a market cap of $171.56 billion.

Operations: The company's revenue is primarily derived from its Small Business and Self-Employed segment at $9.53 billion, followed by the Consumer segment at $4.45 billion, Credit Karma at $1.71 billion, and Pro-Tax at $599 million.

Estimated Discount To Fair Value: 35.5%

Intuit is trading at US$623.7, significantly below its estimated fair value of US$967.09, highlighting potential undervaluation based on cash flows. Revenue growth is expected to outpace the broader U.S. market, with earnings projected to grow 16.5% annually, surpassing market averages. However, recent insider selling may raise concerns for some investors. Intuit's focus on AI-driven innovations and enterprise solutions aims to enhance productivity and profitability for mid-market businesses and accounting professionals alike.

NasdaqGS:INTU Discounted Cash Flow as at Oct 2024
NasdaqGS:INTU Discounted Cash Flow as at Oct 2024

Snap (NYSE:SNAP)

Overview: Snap Inc. is a technology company that operates in North America, Europe, and internationally with a market cap of approximately $17.77 billion.

Operations: The company's revenue is primarily derived from its Software & Programming segment, which generated approximately $4.98 billion.

Estimated Discount To Fair Value: 47.4%

Snap is trading at US$10.89, considerably below its fair value estimate of US$20.72, suggesting undervaluation based on cash flows. Revenue growth is forecasted to exceed the U.S. market average at 11.9% annually, with profitability expected within three years. Despite significant insider selling recently, Snap's share repurchase program worth up to $500 million reflects management's confidence in its financial health and future prospects amidst improving sales and narrowing net losses.

NYSE:SNAP Discounted Cash Flow as at Oct 2024
NYSE:SNAP Discounted Cash Flow as at Oct 2024

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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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