US Exchange: American Healthcare REIT And 2 More Stocks Estimated Below Intrinsic Value

The U.S. stock market has recently faced turbulence, with major indices like the Nasdaq Composite and S&P 500 experiencing significant declines following a disappointing jobs report. Amidst this volatility, investors are increasingly on the lookout for undervalued stocks that offer potential for growth despite broader economic uncertainties. In this context, identifying stocks that are estimated to be below their intrinsic value can be particularly appealing. This article will explore three such stocks in the United States market: American Healthcare REIT and two others poised as potential opportunities for discerning investors.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Kaspi.kz (NasdaqGS:KSPI)	$123.34	$243.56	49.4%
Peoples Financial Services (NasdaqGS:PFIS)	$44.30	$87.05	49.1%
Amdocs (NasdaqGS:DOX)	$84.91	$167.90	49.4%
Molina Healthcare (NYSE:MOH)	$327.48	$641.75	49%
Pure Storage (NYSE:PSTG)	$45.73	$90.02	49.2%
Progress Software (NasdaqGS:PRGS)	$57.65	$115.16	49.9%
Zscaler (NasdaqGS:ZS)	$156.78	$309.83	49.4%
Vasta Platform (NasdaqGS:VSTA)	$2.50	$4.97	49.7%
Sea (NYSE:SE)	$77.18	$151.22	49%
Hesai Group (NasdaqGS:HSAI)	$3.69	$7.22	48.9%

Click here to see the full list of 185 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

American Healthcare REIT (NYSE:AHR)

Overview: American Healthcare REIT, Inc. is a self-managed real estate investment trust that acquires, owns, and operates a diversified portfolio of clinical healthcare properties with a market cap of $3 billion.

Operations: The company's revenue segments include outpatient medical buildings ($139.69 million), senior housing operating portfolio ($215.47 million), triple-net leased properties ($50.53 million), and integrated senior health campuses ($1.54 billion).

Estimated Discount To Fair Value: 34.5%

American Healthcare REIT, Inc. is trading at US$22.05, significantly below its estimated fair value of US$33.67, indicating it may be undervalued based on cash flows. Despite a recent net income turnaround and inclusion in multiple Russell indices, its dividend of 4.54% isn't well covered by free cash flows. Revenue growth is forecasted at 8.6% annually, slightly above the US market average but lower than ideal for high-growth stocks.

• Our growth report here indicates American Healthcare REIT may be poised for an improving outlook.
• Dive into the specifics of American Healthcare REIT here with our thorough financial health report.

CI&T (NYSE:CINT)

Overview: CI&T Inc., with a market cap of $916.64 million, provides strategy, design, and software engineering services to facilitate digital transformation for enterprises globally.

Operations: The company generates R$2.14 billion in revenue from its computer services segment.

Estimated Discount To Fair Value: 20.6%

CI&T is trading at US$6.88, significantly below its estimated fair value of US$8.66, suggesting it may be undervalued based on cash flows. The company’s earnings are forecast to grow 33% annually over the next three years, outpacing the U.S. market's 15% growth rate. Despite a slight decline in recent sales and net income, CI&T reported improved earnings per share and has been actively repurchasing shares to enhance shareholder value.

• Insights from our recent growth report point to a promising forecast for CI&T's business outlook.
• Get an in-depth perspective on CI&T's balance sheet by reading our health report here.

Penumbra (NYSE:PEN)

Overview: Penumbra, Inc., with a market cap of $7.91 billion, designs, develops, manufactures, and markets medical devices in the United States and internationally.

Operations: Penumbra generates $1.13 billion from the design, development, manufacturing, and marketing of innovative medical products.

Estimated Discount To Fair Value: 32.3%

Penumbra is currently trading at US$203.73, significantly below its estimated fair value of US$300.81, indicating it may be undervalued based on cash flows. Despite recent earnings guidance being lowered and a net loss of US$60.2 million in Q2 2024, the company's earnings are forecast to grow 44.25% annually over the next three years. Penumbra has also announced a share repurchase program worth up to US$200 million, which may enhance shareholder value amidst these challenges.

• Our comprehensive growth report raises the possibility that Penumbra is poised for substantial financial growth.
• Take a closer look at Penumbra's balance sheet health here in our report.

Next Steps

• Investigate our full lineup of 185 Undervalued US Stocks Based On Cash Flows right 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.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready For A Different Approach?

• 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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