3 US Stocks Estimated To Be Trading At Up To 48.2% Below Intrinsic Value

With major U.S. stock indexes poised to open lower, reflecting a continuation of recent declines, investors are increasingly seeking opportunities amidst market volatility. In this environment, identifying undervalued stocks becomes crucial, as these can potentially offer significant value relative to their intrinsic worth despite broader market challenges.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Clear Secure (NYSE:YOU)	$27.22	$53.24	48.9%
Argan (NYSE:AGX)	$142.95	$279.45	48.8%
First National (NasdaqCM:FXNC)	$23.77	$46.63	49%
Oddity Tech (NasdaqGM:ODD)	$43.55	$84.59	48.5%
Western Alliance Bancorporation (NYSE:WAL)	$83.68	$164.31	49.1%
HealthEquity (NasdaqGS:HQY)	$96.30	$189.22	49.1%
QuinStreet (NasdaqGS:QNST)	$23.85	$47.17	49.4%
Progress Software (NasdaqGS:PRGS)	$65.48	$129.48	49.4%
Freshpet (NasdaqGM:FRPT)	$146.36	$283.12	48.3%
South Atlantic Bancshares (OTCPK:SABK)	$15.20	$29.97	49.3%

Click here to see the full list of 180 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

GXO Logistics (NYSE:GXO)

Overview: GXO Logistics, Inc. operates globally offering logistics services and has a market capitalization of approximately $5.11 billion.

Operations: The company generates revenue from its Business Services segment, which amounted to $11.05 billion.

Estimated Discount To Fair Value: 27.6%

GXO Logistics appears undervalued, trading at US$42.80, significantly below its estimated fair value of US$59.14. Despite a high debt level and recent profit margin decline from 2.1% to 1%, GXO's earnings are projected to grow substantially at 44.7% annually over the next three years, outpacing the broader U.S. market growth rate of 15.3%. Recent strategic partnerships with SAMSE Group and Guess highlight operational expansion and innovation in logistics solutions, potentially enhancing future cash flows.

• Our expertly prepared growth report on GXO Logistics implies its future financial outlook may be stronger than recent results.
• Dive into the specifics of GXO Logistics here with our thorough financial health report.

Kyndryl Holdings (NYSE:KD)

Overview: Kyndryl Holdings, Inc. is a global technology services and IT infrastructure provider with a market cap of approximately $8.09 billion.

Operations: The company's revenue segments are distributed as follows: Japan $2.34 billion, United States $3.97 billion, Principal Markets $5.69 billion, and Strategic Markets $3.31 billion.

Estimated Discount To Fair Value: 45.8%

Kyndryl Holdings is trading at US$34.83, significantly below its estimated fair value of US$64.21, highlighting potential undervaluation based on cash flows. Despite slower revenue growth forecasts of 1.6% annually compared to the U.S. market's 9.2%, Kyndryl is expected to achieve profitability within three years with earnings growth projected at a robust rate of 66.93% per year. Recent strategic alliances with Nokia and Microsoft further bolster its capabilities in data center networking and cloud modernization services, potentially enhancing future cash flows.

• The growth report we've compiled suggests that Kyndryl Holdings' future prospects could be on the up.
• Click here and access our complete balance sheet health report to understand the dynamics of Kyndryl Holdings.

WEX (NYSE:WEX)

Overview: WEX Inc. operates a commerce platform both in the United States and internationally, with a market cap of approximately $6.88 billion.

Operations: The company's revenue is derived from three primary segments: Benefits ($730.70 million), Mobility ($1.41 billion), and Corporate Payments ($518.50 million).

Estimated Discount To Fair Value: 48.2%

WEX, priced at US$173.05, appears undervalued with an estimated fair value of US$334.24, trading 48.2% below this mark. While revenue growth is forecasted at 4.9% annually—below the U.S. market's pace—earnings are expected to grow significantly by 20.7% per year, outpacing the market average of 15.3%. Recent AI-driven initiatives in benefits administration and a renewed partnership with Holman underscore WEX's strategic advancements and potential for enhanced cash flows.

• According our earnings growth report, there's an indication that WEX might be ready to expand.
• Navigate through the intricacies of WEX with our comprehensive financial health report here.

Where To Now?

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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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