3 Stocks Estimated To Be Trading Below Their Intrinsic Value By Up To 46.9%

As major U.S. stock indexes reach record highs fueled by optimism over U.S.-China trade discussions and expectations of a Federal Reserve rate cut, investors are increasingly on the lookout for opportunities to capitalize on undervalued stocks. In this buoyant market environment, identifying stocks trading below their intrinsic value can offer potential for growth, making them an attractive consideration for those seeking to enhance their investment portfolios.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Udemy (UDMY)	$6.92	$13.53	48.9%
ImmunityBio (IBRX)	$2.66	$5.09	47.8%
First Busey (BUSE)	$23.20	$45.91	49.5%
First Advantage (FA)	$14.22	$27.26	47.8%
Fifth Third Bancorp (FITB)	$42.45	$82.75	48.7%
e.l.f. Beauty (ELF)	$126.18	$252.06	49.9%
Corpay (CPAY)	$284.24	$545.71	47.9%
Constellium (CSTM)	$16.85	$32.34	47.9%
Ategrity Specialty Insurance Company Holdings (ASIC)	$19.54	$38.00	48.6%
ASP Isotopes (ASPI)	$10.09	$19.57	48.5%

Click here to see the full list of 183 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.

Compass (COMP)

Overview: Compass, Inc. operates as a real estate brokerage service provider in the United States with a market cap of $4.48 billion.

Operations: The company generates revenue from its Internet Information Providers segment, amounting to $6.29 billion.

Estimated Discount To Fair Value: 46.9%

Compass is trading at 46.9% below its estimated fair value of US$15.19, indicating significant undervaluation based on discounted cash flow analysis. The company reported strong revenue growth, with second-quarter sales reaching US$2.06 billion, up from US$1.70 billion the previous year, and net income rising to US$39.4 million from US$20.7 million in the same period last year. Recent leadership changes and a merger announcement with Anywhere Real Estate could impact future cash flows positively.

• Our comprehensive growth report raises the possibility that Compass is poised for substantial financial growth.
• Dive into the specifics of Compass here with our thorough financial health report.

Corning (GLW)

Overview: Corning Incorporated operates in optical communications, display technologies, environmental technologies, specialty materials, and life sciences businesses with a market cap of $74.88 billion.

Operations: The company's revenue segments include Optical Communications at $5.54 billion, Display Technologies at $3.79 billion, Specialty Materials at $2.11 billion, and Life Sciences at $978 million.

Estimated Discount To Fair Value: 21.8%

Corning is trading at 21.8% below its estimated fair value of US$114.26, suggesting it is undervalued based on discounted cash flow analysis. Recent strategic alliances with QuantumScape and GlobalFoundries enhance its position in battery technology and silicon photonics, potentially boosting future cash flows. The company's earnings grew by 87.4% last year, with a forecasted annual profit growth of over 20%. Corning's solid partnerships with Apple further bolster its revenue streams and financial stability despite high debt levels.

• In light of our recent growth report, it seems possible that Corning's financial performance will exceed current levels.
• Click to explore a detailed breakdown of our findings in Corning's balance sheet health report.

V.F (VFC)

Overview: V.F. Corporation, along with its subsidiaries, provides branded apparel, footwear, and accessories for men, women, and children across the Americas, Europe, and the Asia-Pacific region with a market cap of approximately $6.49 billion.

Operations: The company's revenue segments include Active at $3.02 billion and Outdoor at $5.64 billion.

Estimated Discount To Fair Value: 24.2%

V.F. Corporation is trading at 24.2% below its fair value estimate of US$21.9, highlighting potential undervaluation based on cash flows. Despite legal challenges and a decline in Vans' growth, V.F.'s earnings are expected to grow significantly at 32.1% annually over the next three years, outpacing the broader U.S. market growth rate of 15.5%. However, revenue growth remains modest at 2.3% per year, and debt coverage by operating cash flow is weak.

• According our earnings growth report, there's an indication that V.F might be ready to expand.
• Navigate through the intricacies of V.F with our comprehensive financial health report here.

Make It Happen

• Delve into our full catalog of 183 Undervalued US Stocks Based On Cash Flows here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Curious About Other Options?

• 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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