Wix.com And 2 More Value Stocks Trading At A Potential Discount

In a week marked by significant economic data and market volatility, global indices have experienced sharp declines, with the U.S. labor market cooling more than expected and manufacturing activity contracting. Amid this backdrop, investors are increasingly seeking value stocks that may be trading at a potential discount due to broader market movements. Identifying undervalued stocks in such an environment requires focusing on companies with strong fundamentals that are temporarily overlooked by the market. In this article, we will explore Wix.com and two other value stocks that could present attractive opportunities for discerning investors.

Top 10 Undervalued Stocks Based On Cash Flows

Name	Current Price	Fair Value (Est)	Discount (Est)
Best Pacific International Holdings (SEHK:2111)	HK$2.17	HK$4.34	50%
Kontron (XTRA:SANT)	€16.66	€33.09	49.6%
Pinnacle Financial Partners (NasdaqGS:PNFP)	US$87.14	US$173.98	49.9%
Cadence Bank (NYSE:CADE)	US$29.70	US$59.29	49.9%
Avidbank Holdings (OTCPK:AVBH)	US$18.75	US$37.40	49.9%
Litium (OM:LITI)	SEK8.32	SEK16.57	49.8%
Loihde Oyj (HLSE:LOIHDE)	€11.55	€22.91	49.6%
Global-E Online (NasdaqGS:GLBE)	US$34.35	US$68.66	50%
Seatrium (SGX:5E2)	SGD1.42	SGD2.82	49.7%
Fine Foods & Pharmaceuticals N.T.M (BIT:FF)	€8.12	€16.12	49.6%

Click here to see the full list of 893 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Wix.com (NasdaqGS:WIX)

Overview: Wix.com Ltd., with a market cap of $8.75 billion, operates as a cloud-based web development platform catering to registered users and creators globally.

Operations: Wix.com generates $1.65 billion in revenue from its Internet Software & Services segment.

Estimated Discount To Fair Value: 38.3%

Wix.com reported strong earnings for Q2 2024, with revenue of US$435.75 million and net income of US$39.52 million, reflecting solid growth from the previous year. The company has launched several AI-powered tools to enhance user experience and announced a $200 million share repurchase program, indicating robust cash flow management. Trading at approximately 38% below its estimated fair value of US$265.43, Wix.com appears undervalued based on discounted cash flows.

• Our earnings growth report unveils the potential for significant increases in Wix.com's future results.
• Delve into the full analysis health report here for a deeper understanding of Wix.com.

Dynatrace (NYSE:DT)

Overview: Dynatrace, Inc. offers a security platform for multicloud environments across various regions globally and has a market cap of approximately $13.83 billion.

Operations: The company generates revenue from providing a security platform tailored for multicloud environments across North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

Estimated Discount To Fair Value: 40.2%

Dynatrace's earnings have grown 66.3% annually over the past five years, and its revenue is forecast to grow 13.7% per year, outpacing the US market. Despite a lower future Return on Equity (18.9%), its earnings are expected to increase significantly by 20.86% annually over the next three years. Trading at $47.3, Dynatrace is undervalued by more than 20%, with analysts agreeing on a potential price rise of 21%. Recent Q1 results showed revenue of $399.22 million and net income of $38.62 million, maintaining stable profitability.

• Upon reviewing our latest growth report, Dynatrace's projected financial performance appears quite optimistic.
• Get an in-depth perspective on Dynatrace's balance sheet by reading our health report here.

Swire Properties (SEHK:1972)

Overview: Swire Properties Limited, with a market cap of HK$84.83 billion, develops, owns, and operates mixed-use commercial properties in Hong Kong, Mainland China, the United States, and internationally.

Operations: Swire Properties generates revenue from the development, ownership, and operation of mixed-use commercial properties across Hong Kong, Mainland China, the United States, and internationally.

Estimated Discount To Fair Value: 22.6%

Swire Properties is trading at HK$14.22, which is 22.6% below its estimated fair value of HK$18.37, suggesting it may be undervalued based on cash flows. Despite a forecasted annual earnings growth of 25%, recent H1 2024 results show a decline in net income to HK$1.80 billion from HK$2.22 billion the previous year, with basic earnings per share dropping to HKD 0.31 from HKD 0.38. The company announced an interim dividend of HKD 0.34 per share for FY2024.

• Our expertly prepared growth report on Swire Properties implies its future financial outlook may be stronger than recent results.
• Take a closer look at Swire Properties' balance sheet health here in our report.

Turning Ideas Into Actions

• Get an in-depth perspective on all 893 Undervalued Stocks Based On Cash Flows by using our screener here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

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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