Stock Analysis

3 US Stocks Estimated To Be Trading At Up To 46.6% Discount

As the U.S. stock market navigates the complexities of inflation and employment data, investors are increasingly attentive to economic indicators that influence Federal Reserve policies and interest rate decisions. Amidst this cautious environment, identifying undervalued stocks can provide opportunities for those looking to capitalize on potential market mispricings.

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

NameCurrent PriceFair Value (Est)Discount (Est)
MidWestOne Financial Group (NasdaqGS:MOFG)$27.21$53.5749.2%
Western Alliance Bancorporation (NYSE:WAL)$85.43$169.3049.5%
Cadence Bank (NYSE:CADE)$31.17$61.2749.1%
Heartland Financial USA (NasdaqGS:HTLF)$57.04$110.1848.2%
EVERTEC (NYSE:EVTC)$32.96$65.8549.9%
Bowhead Specialty Holdings (NYSE:BOW)$28.44$56.1449.3%
Shoals Technologies Group (NasdaqGM:SHLS)$5.15$10.2549.8%
Vertex Pharmaceuticals (NasdaqGS:VRTX)$476.15$937.8349.2%
SunOpta (NasdaqGS:STKL)$6.36$12.6549.7%
Viking Holdings (NYSE:VIK)$37.84$74.6949.3%

Click here to see the full list of 188 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Celsius Holdings (NasdaqCM:CELH)

Overview: Celsius Holdings, Inc. is a company that develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements across various international markets with a market cap of $7.11 billion.

Operations: The company's revenue comes from its non-alcoholic beverages segment, totaling $1.49 billion.

Estimated Discount To Fair Value: 19%

Celsius Holdings appears undervalued based on cash flows, trading at US$34.91, below its estimated fair value of US$43.1. Recent earnings show strong growth with Q2 sales reaching US$401.98 million and net income at US$79.78 million, reflecting significant year-over-year increases. While profit growth is projected at 16.7% annually—outpacing the broader U.S. market—revenue growth is anticipated to be slower than 20% per year but faster than the market average of 8.8%.

NasdaqCM:CELH Discounted Cash Flow as at Oct 2024
NasdaqCM:CELH Discounted Cash Flow as at Oct 2024

Alnylam Pharmaceuticals (NasdaqGS:ALNY)

Overview: Alnylam Pharmaceuticals, Inc. is a biopharmaceutical company that specializes in the discovery, development, and commercialization of novel therapeutics using ribonucleic acid interference technology, with a market cap of approximately $34.78 billion.

Operations: The company's revenue segment primarily comprises $2.34 billion from the discovery, development, and commercialization of RNAi therapeutics.

Estimated Discount To Fair Value: 46.6%

Alnylam Pharmaceuticals is trading at US$278.62, significantly below its estimated fair value of US$521.7, suggesting it may be undervalued based on cash flows. Recent earnings reveal substantial revenue growth to US$659.83 million for Q2 2024, with a narrowed net loss of US$16.89 million compared to the previous year. The company is expected to achieve profitability within three years, with forecasted revenue growth outpacing the broader U.S. market average at 19.3% annually.

NasdaqGS:ALNY Discounted Cash Flow as at Oct 2024
NasdaqGS:ALNY Discounted Cash Flow as at Oct 2024

Corning (NYSE:GLW)

Overview: Corning Incorporated operates in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences sectors both in the United States and internationally, with a market cap of approximately $39.99 billion.

Operations: The company's revenue segments include Display Technologies ($3.73 billion), Optical Communications ($3.86 billion), Environmental Technologies ($1.76 billion), Specialty Materials ($1.99 billion), and Life Sciences ($957 million).

Estimated Discount To Fair Value: 13.9%

Corning is trading at US$46.02, below its estimated fair value of US$53.44, indicating potential undervaluation based on cash flows. The company's earnings are projected to grow significantly at 28.3% annually, outpacing the broader U.S. market's growth rate. Despite high debt levels and a dividend not well covered by earnings or free cash flows, Corning's innovative product developments in semiconductor materials could enhance future revenue streams and support its valuation outlook.

NYSE:GLW Discounted Cash Flow as at Oct 2024
NYSE:GLW Discounted Cash Flow as at Oct 2024

Key Takeaways

Curious About Other Options?

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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About NasdaqGS:ALNY

Alnylam Pharmaceuticals

Alnylam Pharmaceuticals, Inc. discovers, develops, and commercializes therapeutics based on ribonucleic acid interference.

Exceptional growth potential with adequate balance sheet.

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