Stock Analysis

3 US Stocks Including Celsius Holdings That Might Be Priced Below Their Estimated Value

NasdaqGS:TEAM
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As major U.S. stock indexes prepare to open higher, buoyed by a surge in chip stocks and renewed optimism in the tech sector, investors are closely watching for opportunities amid fluctuating market conditions. In this environment, identifying undervalued stocks can be crucial for those looking to capitalize on potential growth, as these equities may offer value that is not yet reflected in their current prices.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Clear Secure (NYSE:YOU)$27.27$53.0348.6%
Dime Community Bancshares (NasdaqGS:DCOM)$30.89$61.6149.9%
German American Bancorp (NasdaqGS:GABC)$39.06$77.3449.5%
Camden National (NasdaqGS:CAC)$42.08$83.9049.8%
Ally Financial (NYSE:ALLY)$35.85$71.6249.9%
Kanzhun (NasdaqGS:BZ)$13.95$27.3649%
Constellium (NYSE:CSTM)$10.52$20.9249.7%
Mr. Cooper Group (NasdaqCM:COOP)$95.39$187.7149.2%
Progress Software (NasdaqGS:PRGS)$65.26$128.8749.4%
South Atlantic Bancshares (OTCPK:SABK)$15.59$30.7549.3%

Click here to see the full list of 177 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.

Celsius Holdings (NasdaqCM:CELH)

Overview: Celsius Holdings, Inc. is engaged in the development, processing, marketing, distribution, and sale of functional energy drinks and liquid supplements across various international markets with a market cap of $6.77 billion.

Operations: The company's revenue primarily comes from its non-alcoholic beverages segment, totaling $1.37 billion.

Estimated Discount To Fair Value: 35.2%

Celsius Holdings is trading at US$28.8, significantly below its estimated fair value of US$44.45, suggesting it may be undervalued based on cash flows. Despite a 49% earnings growth last year and projected revenue growth outpacing the U.S. market, recent legal challenges allege misleading sales practices with PepsiCo, potentially impacting future financial performance. The stock's current valuation reflects these concerns amidst ongoing litigation and insider selling activities in recent months.

NasdaqCM:CELH Discounted Cash Flow as at Jan 2025
NasdaqCM:CELH Discounted Cash Flow as at Jan 2025

Atlassian (NasdaqGS:TEAM)

Overview: Atlassian Corporation, with a market cap of approximately $65.18 billion, designs, develops, licenses, and maintains various software products worldwide through its subsidiaries.

Operations: The company's revenue primarily comes from its Software & Programming segment, generating $4.57 billion.

Estimated Discount To Fair Value: 33.6%

Atlassian, trading at US$250.27, is priced below its estimated fair value of US$376.99, highlighting potential undervaluation based on cash flows. Despite a recent net loss increase and significant insider selling, Atlassian's strategic partnership with AWS aims to enhance cloud capabilities and revenue growth above the U.S. market rate of 9%. The appointment of Christian Smith as a board member may bolster sales strategies amid these transformative efforts.

NasdaqGS:TEAM Discounted Cash Flow as at Jan 2025
NasdaqGS:TEAM Discounted Cash Flow as at Jan 2025

Cloudflare (NYSE:NET)

Overview: Cloudflare, Inc. is a cloud services provider offering various solutions to businesses globally, with a market cap of approximately $39.37 billion.

Operations: Cloudflare generates revenue primarily from its Internet Telephone segment, which amounts to $1.57 billion.

Estimated Discount To Fair Value: 26.2%

Cloudflare, priced at US$114.73, is trading 26.2% below its estimated fair value of US$155.37, suggesting potential undervaluation based on cash flows. Recent earnings showed improved net losses and strong revenue growth to US$430.08 million for Q3 2024. The company's strategic expansion in Lisbon and the appointment of Chirantan CJ Desai as President aim to drive further growth, despite past shareholder dilution and insider selling activities over the last quarter.

NYSE:NET Discounted Cash Flow as at Jan 2025
NYSE:NET Discounted Cash Flow as at Jan 2025

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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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