3 Stocks That Could Be Trading Below Their Estimated Fair Value

Over the last 7 days, the United States market has risen by 7.1%, contributing to a 7.7% increase over the past year, with earnings growth anticipated at 14% per annum in the coming years. In this environment, identifying stocks that may be trading below their estimated fair value can offer potential opportunities for investors looking to capitalize on future growth prospects.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
MINISO Group Holding (NYSE:MNSO)	$17.62	$34.66	49.2%
ConnectOne Bancorp (NasdaqGS:CNOB)	$22.82	$45.42	49.8%
Lantheus Holdings (NasdaqGM:LNTH)	$102.70	$203.75	49.6%
Trade Desk (NasdaqGM:TTD)	$54.40	$106.42	48.9%
First Reliance Bancshares (OTCPK:FSRL)	$9.35	$18.65	49.9%
Shift4 Payments (NYSE:FOUR)	$79.66	$158.86	49.9%
Veracyte (NasdaqGM:VCYT)	$31.67	$62.84	49.6%
BigCommerce Holdings (NasdaqGM:BIGC)	$5.27	$10.36	49.1%
Verra Mobility (NasdaqCM:VRRM)	$21.99	$43.04	48.9%
Roku (NasdaqGS:ROKU)	$68.14	$135.48	49.7%

Click here to see the full list of 183 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

BeiGene (NasdaqGS:ONC)

Overview: BeiGene, Ltd. is an oncology company focused on discovering and developing cancer treatments across the United States, China, Europe, and internationally with a market cap of approximately $26.39 billion.

Operations: The company generates revenue primarily from its pharmaceutical products, totaling $3.81 billion.

Estimated Discount To Fair Value: 46.9%

BeiGene's stock is trading significantly below its estimated fair value, presenting a potential opportunity for investors focused on cash flow valuation. Despite reporting a net loss of US$644.79 million in 2024, the company has shown revenue growth and expects further increases to between US$4.9 billion and US$5.3 billion in 2025. Recent strategic alliances and product approvals, such as TEVIMBRA's approval for ESCC treatment, bolster its position in the oncology market.

• Our growth report here indicates BeiGene may be poised for an improving outlook.
• Take a closer look at BeiGene's balance sheet health here in our report.

Roku (NasdaqGS:ROKU)

Overview: Roku, Inc. operates a TV streaming platform both in the United States and internationally, with a market cap of approximately $9.59 billion.

Operations: Roku generates revenue through its Devices segment, which contributed $590.12 million, and its Platform segment, which brought in $3.52 billion.

Estimated Discount To Fair Value: 49.7%

Roku's stock trades at US$68.14, significantly below its estimated fair value of US$135.48, highlighting potential undervaluation based on cash flows. Despite recent net losses, Roku's earnings are forecast to grow substantially over the next three years with expectations of profitability, surpassing average market growth rates. Recent product innovations and partnerships like Monster Jam enhance its platform offerings, potentially strengthening future cash flow prospects as it expands globally in streaming and device markets.

• In light of our recent growth report, it seems possible that Roku's financial performance will exceed current levels.
• Click here to discover the nuances of Roku with our detailed financial health report.

Wix.com (NasdaqGS:WIX)

Overview: Wix.com Ltd. operates a cloud-based web development platform for registered users and creators globally, with a market cap of approximately $9.30 billion.

Operations: The company generates revenue from its Internet Software & Services segment, totaling $1.76 billion.

Estimated Discount To Fair Value: 19.5%

Wix.com, trading at US$164.78, is undervalued compared to its estimated fair value of US$204.68. Despite high debt levels, the company's earnings are expected to grow significantly by 27.2% annually over the next three years, outpacing the broader U.S. market's growth rate. Recent AI-powered product launches like Astro and adaptive content applications aim to enhance user engagement and operational efficiency, potentially boosting future cash flows alongside a strong projected return on equity of 65.8%.

• The analysis detailed in our Wix.com growth report hints at robust future financial performance.
• Delve into the full analysis health report here for a deeper understanding of Wix.com.

Next Steps

• Access the full spectrum of 183 Undervalued US Stocks Based On Cash Flows by clicking on this link.
• 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.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Searching for a Fresh Perspective?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com