3 US Stocks That Might Be Undervalued According To Estimates

As the United States stock market experiences a promising Santa Claus Rally, with major indices like the Nasdaq Composite and S&P 500 posting gains, investors are keenly observing opportunities for potential undervalued stocks. In such an environment, identifying stocks that may be trading below their intrinsic value can be crucial for those looking to capitalize on market movements and enhance their investment portfolios.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Clear Secure (NYSE:YOU)	$27.29	$53.16	48.7%
Argan (NYSE:AGX)	$143.57	$279.10	48.6%
Western Alliance Bancorporation (NYSE:WAL)	$84.75	$165.15	48.7%
Lamb Weston Holdings (NYSE:LW)	$63.69	$125.18	49.1%
HealthEquity (NasdaqGS:HQY)	$95.68	$189.22	49.4%
LifeMD (NasdaqGM:LFMD)	$4.91	$9.75	49.7%
Progress Software (NasdaqGS:PRGS)	$66.26	$129.49	48.8%
Freshpet (NasdaqGM:FRPT)	$145.17	$283.12	48.7%
WEX (NYSE:WEX)	$171.67	$333.02	48.5%
South Atlantic Bancshares (OTCPK:SABK)	$15.45	$29.97	48.4%

Click here to see the full list of 174 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Analog Devices (NasdaqGS:ADI)

Overview: Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits, software, and subsystems globally with a market cap of approximately $108.24 billion.

Operations: The company generates revenue of $9.43 billion from designing, developing, manufacturing, and marketing a broad range of integrated circuits.

Estimated Discount To Fair Value: 24.5%

Analog Devices is trading at US$218.09, significantly undervalued compared to its estimated fair value of US$288.74, offering potential for investors focused on cash flow valuations. Despite a recent dip in sales and net income, the company forecasts robust earnings growth of 22.82% annually over the next three years, outpacing the broader US market's growth expectations. However, profit margins have declined from last year, and dividend coverage remains weak.

• Insights from our recent growth report point to a promising forecast for Analog Devices' business outlook.
• Navigate through the intricacies of Analog Devices with our comprehensive financial health report here.

CrowdStrike Holdings (NasdaqGS:CRWD)

Overview: CrowdStrike Holdings, Inc. offers cybersecurity solutions both in the United States and internationally, with a market capitalization of approximately $90.10 billion.

Operations: The company generates revenue from its Security Software & Services segment, amounting to $3.74 billion.

Estimated Discount To Fair Value: 22.2%

CrowdStrike Holdings, trading at US$365.79, is undervalued with an estimated fair value of US$469.96 based on discounted cash flow analysis. Despite recent insider selling and a net loss in the latest quarter, its revenue grew to US$1.01 billion from US$786 million year-over-year. The company anticipates strong earnings growth of 42% annually over the next three years, surpassing market averages, supported by strategic partnerships and innovative cybersecurity solutions like AI Security Posture Management.

• The analysis detailed in our CrowdStrike Holdings growth report hints at robust future financial performance.
• Click here to discover the nuances of CrowdStrike Holdings with our detailed financial health report.

Truist Financial (NYSE:TFC)

Overview: Truist Financial Corporation is a financial services company offering banking and trust services in the Southeastern and Mid-Atlantic United States, with a market cap of approximately $58.40 billion.

Operations: Truist Financial's revenue segments include Treasury & Corporate, which contributed -$9.87 billion.

Estimated Discount To Fair Value: 33%

Truist Financial, trading at US$43.99, is undervalued with a fair value estimate of US$65.68 based on discounted cash flow analysis. Despite challenges in dividend sustainability and modest revenue growth forecasts of 11.4% annually, the stock's valuation reflects a significant discount to its intrinsic worth. Recent executive changes and strategic partnerships aim to enhance risk management and compliance capabilities, potentially supporting future profitability as earnings are projected to grow 55% per year.

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

Seize The Opportunity

• Click here to access our complete index of 174 Undervalued US Stocks Based On Cash Flows.
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Interested In Other Possibilities?

• 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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