Stock Analysis

3 US Stocks That Could Be Trading At A Discount

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As the major U.S. stock indexes edged higher recently, investors are keeping a close eye on significant earnings reports and economic indicators that could influence market sentiment. Amid this cautious optimism, identifying undervalued stocks can be crucial for those looking to capitalize on potential discounts in the current market landscape.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Kaspi.kz (NasdaqGS:KSPI)$127.26$250.1149.1%
EQT (NYSE:EQT)$32.75$64.3649.1%
Heartland Financial USA (NasdaqGS:HTLF)$55.00$109.3949.7%
California Resources (NYSE:CRC)$52.23$103.7749.7%
Trustmark (NasdaqGS:TRMK)$32.73$64.3149.1%
Progress Software (NasdaqGS:PRGS)$57.85$114.8849.6%
American Superconductor (NasdaqGS:AMSC)$20.515$40.8349.8%
EVERTEC (NYSE:EVTC)$33.51$66.5449.6%
Vertex Pharmaceuticals (NasdaqGS:VRTX)$480.30$958.0649.9%
Bilibili (NasdaqGS:BILI)$14.47$28.6749.5%

Click here to see the full list of 189 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

BeiGene (NasdaqGS:BGNE)

Overview: BeiGene, Ltd. is an oncology company focused on discovering and developing cancer treatments globally, with a market cap of $21.14 billion.

Operations: Revenue from pharmaceutical products amounted to $3.10 billion.

Estimated Discount To Fair Value: 24.4%

BeiGene appears undervalued based on cash flows, trading at 24.4% below fair value estimates. Recent earnings show significant revenue growth to US$929.17 million for Q2 2024, up from US$595.26 million a year ago, and a reduced net loss of US$120.41 million from US$381.14 million previously. The company's new U.S. facility in New Jersey enhances its manufacturing and R&D capabilities, supporting future growth and cost efficiencies in oncology treatments.

NasdaqGS:BGNE Discounted Cash Flow as at Aug 2024

Marriott International (NasdaqGS:MAR)

Overview: Marriott International, Inc. operates, franchises, and licenses hotels, residential properties, timeshares, and other lodging facilities globally with a market cap of $63.25 billion.

Operations: The company's revenue segments include $3.28 billion from U.S. & Canada and $2.28 billion from Segment Adjustment.

Estimated Discount To Fair Value: 22.5%

Marriott International, trading at US$227.62, is significantly undervalued with an estimated fair value of US$293.52. Despite high debt levels, its earnings are forecast to grow 6.16% annually, and revenue is expected to increase by 23.5% per year, outpacing the U.S. market growth rate of 8.8%. Recent expansions include the opening of its 600th property in Asia Pacific and a long-term licensing agreement with Sonder Holdings Inc., adding over 9,000 rooms to Marriott's portfolio by year-end.

NasdaqGS:MAR Discounted Cash Flow as at Aug 2024

TechnipFMC (NYSE:FTI)

Overview: TechnipFMC plc operates in energy projects, technologies, and systems and services across various regions globally, with a market cap of approximately $11.48 billion.

Operations: The company's revenue segments include Subsea, generating $7.17 billion, and Surface Technologies, contributing $1.33 billion.

Estimated Discount To Fair Value: 19.8%

TechnipFMC, trading at US$26.82, is undervalued with an estimated fair value of US$33.43. The company has shown strong financial performance, reporting a net income of US$186.5 million for Q2 2024 compared to a net loss last year, and raised its revenue guidance for 2024. Recent substantial contracts with Petrobras and Energean enhance its growth outlook. Additionally, the completion of significant share buybacks underscores management's confidence in future cash flows.

NYSE:FTI Discounted Cash Flow as at Aug 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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