3 Top Stocks Estimated To Be Trading At Up To 43.1% Below Intrinsic Value
Reviewed by Simply Wall St
Global markets have shown resilience, with U.S. stocks rebounding from early August sell-offs and European indices gaining on hopes of interest rate cuts. Amidst this positive sentiment, identifying undervalued stocks becomes crucial for investors looking to capitalize on potential growth opportunities. In the current market environment, a good stock is often one that is trading below its intrinsic value, offering a margin of safety while benefiting from broader economic recovery trends.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Best Pacific International Holdings (SEHK:2111) | HK$2.19 | HK$4.36 | 49.8% |
| Hagiwara Electric Holdings (TSE:7467) | ¥3365.00 | ¥6709.49 | 49.8% |
| Kaspi.kz (NasdaqGS:KSPI) | US$126.54 | US$252.58 | 49.9% |
| ANTA Sports Products (SEHK:2020) | HK$67.95 | HK$135.59 | 49.9% |
| Trisul (BOVESPA:TRIS3) | R$4.69 | R$9.37 | 50% |
| Texmaco Rail & Engineering (NSEI:TEXRAIL) | ₹252.75 | ₹504.40 | 49.9% |
| NSE (ENXTPA:ALNSE) | €29.10 | €57.88 | 49.7% |
| Seatrium (SGX:5E2) | SGD1.41 | SGD2.82 | 49.9% |
| Hiconics Eco-energy Technology (SZSE:300048) | CN¥4.34 | CN¥8.67 | 49.9% |
| Chervon Holdings (SEHK:2285) | HK$17.98 | HK$35.93 | 50% |
Let's review some notable picks from our screened stocks.
GlobalFoundries (NasdaqGS:GFS)
Overview: GLOBALFOUNDRIES Inc., a semiconductor foundry with a market cap of $25.18 billion, offers a variety of mainstream wafer fabrication services and technologies globally.
Operations: The company's revenue segment consists of $6.89 billion from semiconductors.
Estimated Discount To Fair Value: 31.2%
GlobalFoundries (US$45.63) is trading 31.2% below its estimated fair value of US$66.34, indicating it may be undervalued based on cash flows. Despite a recent decline in net income and revenue, the company forecasts earnings growth of 22.79% per year, outpacing the US market's average. Recent strategic collaborations and a share repurchase program highlight management's focus on long-term value creation despite current profit margins being lower than last year’s figures.
- Insights from our recent growth report point to a promising forecast for GlobalFoundries' business outlook.
- Click to explore a detailed breakdown of our findings in GlobalFoundries' balance sheet health report.
Coherent (NYSE:COHR)
Overview: Coherent Corp. develops, manufactures, and markets engineered materials and optoelectronic components and devices worldwide, with a market cap of $11.75 billion (NYSE:COHR).
Operations: Coherent generates revenue from three primary segments: Lasers ($1.40 billion), Materials ($1.47 billion), and Networking ($2.34 billion).
Estimated Discount To Fair Value: 34%
Coherent (US$76.63) is trading 34% below its estimated fair value of US$116.05, indicating significant undervaluation based on cash flows. Despite a net loss for the full year, revenue grew to US$4.71 billion from US$4.16 billion a year ago, and losses narrowed significantly. The company forecasts revenue growth of 11.7% per year and aims to become profitable within three years, supported by strategic initiatives like new product launches and leadership changes aimed at driving innovation and efficiency improvements.
- Our growth report here indicates Coherent may be poised for an improving outlook.
- Delve into the full analysis health report here for a deeper understanding of Coherent.
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 $56.95 billion.
Operations: The company generates revenue from various segments, including $24.12 billion from Segment Adjustment and -$9.88 billion from Treasury & Corporate (Ot&C).
Estimated Discount To Fair Value: 43.1%
Truist Financial (US$42.53) trades 43.1% below its fair value estimate of US$74.76, highlighting significant undervaluation based on cash flows. Despite a forecasted annual revenue growth of 12.6%, earnings are currently not covering the dividend yield of 4.89%. The company expects to become profitable within three years, with revenue growth outpacing the broader market at 8.8%. Recent strategic moves include a $1 billion fixed-income offering and leadership changes in technology aimed at enhancing operational efficiency and innovation.
- The growth report we've compiled suggests that Truist Financial's future prospects could be on the up.
- Click here to discover the nuances of Truist Financial with our detailed financial health report.
Seize The Opportunity
- Unlock more gems! Our Undervalued Stocks Based On Cash Flows screener has unearthed 919 more companies for you to explore.Click here to unveil our expertly curated list of 922 Undervalued 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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About NYSE:COHR
Coherent
Develops, manufactures, and markets engineered materials, optoelectronic components, and devices worldwide.
Reasonable growth potential and slightly overvalued.
