Discover 3 US Stocks Including Microchip Technology That May Be Trading Below Estimated Fair Value

As the U.S. stock market approaches record highs, driven by a surge in AI-related stocks and strong earnings reports, investors are keenly searching for opportunities that might be trading below their estimated fair value. In this environment, identifying undervalued stocks requires careful analysis of fundamentals and potential growth prospects amid the broader market rally.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Flushing Financial (NasdaqGS:FFIC)	$14.51	$28.35	48.8%
Atlantic Union Bankshares (NYSE:AUB)	$37.87	$75.40	49.8%
Heartland Financial USA (NasdaqGS:HTLF)	$66.23	$129.87	49%
Afya (NasdaqGS:AFYA)	$15.74	$30.63	48.6%
CI&T (NYSE:CINT)	$6.47	$12.57	48.5%
Privia Health Group (NasdaqGS:PRVA)	$22.68	$44.59	49.1%
Sociedad Química y Minera de Chile (NYSE:SQM)	$38.48	$75.05	48.7%
BeiGene (NasdaqGS:ONC)	$222.22	$437.98	49.3%
Equifax (NYSE:EFX)	$271.88	$535.10	49.2%
Coeur Mining (NYSE:CDE)	$6.36	$12.67	49.8%

Click here to see the full list of 162 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Microchip Technology (NasdaqGS:MCHP)

Overview: Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions across the Americas, Europe, and Asia with a market cap of approximately $31.40 billion.

Operations: The company's revenue segments include Technology Licensing, generating $103.90 million, and Semiconductor Products, contributing $5.39 billion.

Estimated Discount To Fair Value: 30.7%

Microchip Technology's stock appears undervalued, trading 30.7% below its estimated fair value of US$84.36. Despite recent earnings challenges, with profit margins dropping from 28.1% to 14.2%, the company's earnings are projected to grow significantly at over 30% annually, outpacing the US market average growth rate of 15%. However, investors should note Microchip's high debt levels as a potential risk factor when considering its financial position and future cash flow sustainability.

• Insights from our recent growth report point to a promising forecast for Microchip Technology's business outlook.
• Dive into the specifics of Microchip Technology here with our thorough financial health report.

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 $23.31 billion.

Operations: The company generates revenue from its pharmaceutical products segment, amounting to CN¥23.51 billion.

Estimated Discount To Fair Value: 49.3%

BeiGene is trading at US$222.22, significantly below its estimated fair value of US$437.98, indicating potential undervaluation based on cash flows. The company is expected to achieve profitability within three years, with earnings projected to grow substantially at 64.72% annually. Recent developments include a clinical supply agreement with MAIA Biotechnology and positive operating income guidance for 2025, enhancing BeiGene's strategic positioning in the oncology sector despite slower revenue growth compared to peers.

• Upon reviewing our latest growth report, BeiGene's projected financial performance appears quite optimistic.
• Take a closer look at BeiGene's balance sheet health here in our report.

Oracle (NYSE:ORCL)

Overview: Oracle Corporation provides a range of products and services for enterprise information technology environments globally, with a market cap of approximately $482.67 billion.

Operations: Oracle's revenue is derived from three main segments: Cloud and License at $46.68 billion, Services at $5.27 billion, and Hardware at $2.98 billion.

Estimated Discount To Fair Value: 30%

Oracle's stock, trading at US$184.22, is notably below its estimated fair value of US$263.25, suggesting undervaluation based on cash flows. The company's earnings are forecast to grow at 16.5% annually, outpacing the broader U.S. market growth rate of 15%. Despite high debt levels and slower revenue growth compared to peers, Oracle's recent AI enhancements in cloud applications bolster its strategic position across various sectors including healthcare and retail technology solutions.

• Our growth report here indicates Oracle may be poised for an improving outlook.
• Unlock comprehensive insights into our analysis of Oracle stock in this financial health report.

Taking Advantage

• Explore the 162 names from our Undervalued US Stocks Based On Cash Flows screener here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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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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