Stock Analysis

3 Prominent US Stocks Estimated To Be Undervalued By Up To 34.8%

NYSE:GHLD
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As the U.S. stock market seeks to recover from a recent four-day slump, with futures pointing to a higher open amid anticipation of Nvidia's earnings report, investors are closely monitoring economic indicators and policy developments for signs of stability. In this environment, identifying undervalued stocks can offer potential opportunities for growth, as these equities may be trading below their intrinsic value despite broader market fluctuations.

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

NameCurrent PriceFair Value (Est)Discount (Est)
SouthState (NYSE:SSB)$99.65$193.8648.6%
MINISO Group Holding (NYSE:MNSO)$20.68$41.0449.6%
Northwest Bancshares (NasdaqGS:NWBI)$12.49$24.5549.1%
Old National Bancorp (NasdaqGS:ONB)$23.30$45.4748.8%
ConnectOne Bancorp (NasdaqGS:CNOB)$25.16$48.4848.1%
Limbach Holdings (NasdaqCM:LMB)$81.32$160.7849.4%
Cadre Holdings (NYSE:CDRE)$33.35$64.9648.7%
Similarweb (NYSE:SMWB)$9.49$18.1647.7%
Solaris Energy Infrastructure (NYSE:SEI)$32.45$63.4348.8%
Albemarle (NYSE:ALB)$78.42$152.7148.6%

Click here to see the full list of 176 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Agora (NasdaqGS:API)

Overview: Agora, Inc. operates in the real-time engagement technology sector across China, the United States, and internationally with a market cap of $515.62 million.

Operations: Agora's revenue segments are not detailed in the provided text.

Estimated Discount To Fair Value: 26.8%

Agora is trading at US$5.91, 26.8% below its estimated fair value of US$8.08, suggesting it may be undervalued based on discounted cash flow analysis. Despite recent volatility, Agora's earnings have grown 17.3% annually over the past five years and are forecast to grow significantly at 120.33% per year moving forward. Recent guidance indicates expected Q1 2025 revenues between US$31 million and US$33 million, reflecting steady growth despite a slight revenue dip in Q4 2024 compared to the previous year.

NasdaqGS:API Discounted Cash Flow as at Feb 2025
NasdaqGS:API Discounted Cash Flow as at Feb 2025

Infinera (NasdaqGS:INFN)

Overview: Infinera Corporation manufactures semiconductors and supplies networking equipment, optical semiconductors, software, and services globally, with a market cap of approximately $1.57 billion.

Operations: The company's revenue primarily comes from its provision of optical transport networking equipment, software, and related services, amounting to $1.46 billion.

Estimated Discount To Fair Value: 28.9%

Infinera is trading at US$6.66, over 28% below its estimated fair value of US$9.36, highlighting potential undervaluation based on cash flows. The company is forecast to achieve profitability within three years with earnings projected to grow significantly at 159.86% annually. Recent successful trials of Infinera’s ICE7 optical engine with Zayo demonstrate technological advancements that could enhance market competitiveness and address increasing capacity demands in the telecommunications sector effectively.

NasdaqGS:INFN Discounted Cash Flow as at Feb 2025
NasdaqGS:INFN Discounted Cash Flow as at Feb 2025

Guild Holdings (NYSE:GHLD)

Overview: Guild Holdings Company originates, sells, and services residential mortgage loans in the United States with a market cap of approximately $758.10 million.

Operations: The company's revenue segments consist of $684.44 million from origination and $16.82 million from servicing residential mortgage loans in the United States.

Estimated Discount To Fair Value: 34.8%

Guild Holdings is trading at US$12.41, approximately 34.8% below its estimated fair value of US$19.03, suggesting significant undervaluation based on cash flows. The company is expected to achieve profitability within three years with earnings projected to grow by 114.48% annually, outpacing the market's growth rate. However, its debt coverage by operating cash flow remains a concern despite revenue forecasts exceeding market averages at 22.2% per year growth rate.

NYSE:GHLD Discounted Cash Flow as at Feb 2025
NYSE:GHLD Discounted Cash Flow as at Feb 2025

Summing It All Up

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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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