In This Article:
As the U.S. stock market experiences a mixed performance with the Nasdaq and S&P 500 on the rise, driven by strong performances from tech giants like Nvidia, investors are keenly observing potential opportunities amidst geopolitical tensions and fluctuating indices. In such a climate, identifying stocks that may be trading below their intrinsic value becomes crucial for investors looking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
First National (NasdaqCM:FXNC) | $23.10 | $45.26 | 49% |
Capital Bancorp (NasdaqGS:CBNK) | $27.61 | $53.45 | 48.3% |
Business First Bancshares (NasdaqGS:BFST) | $27.81 | $55.07 | 49.5% |
West Bancorporation (NasdaqGS:WTBA) | $23.79 | $46.83 | 49.2% |
Five Star Bancorp (NasdaqGS:FSBC) | $32.51 | $63.89 | 49.1% |
Afya (NasdaqGS:AFYA) | $16.27 | $31.64 | 48.6% |
Air Industries Group (NYSEAM:AIRI) | $4.28 | $8.44 | 49.3% |
Advanced Energy Industries (NasdaqGS:AEIS) | $111.56 | $219.28 | 49.1% |
Marcus & Millichap (NYSE:MMI) | $40.64 | $78.66 | 48.3% |
AirSculpt Technologies (NasdaqGM:AIRS) | $6.375 | $12.46 | 48.9% |
Underneath we present a selection of stocks filtered out by our screen.
Western Digital
Overview: Western Digital Corporation develops, manufactures, and sells data storage devices and solutions globally, with a market cap of approximately $22.57 billion.
Operations: The company's revenue is derived from Hard Disk Drives (HDD), contributing $7.33 billion, and Flash-Based Products (Flash), generating $7.02 billion.
Estimated Discount To Fair Value: 27.1%
Western Digital is trading at US$65.29, significantly below its estimated fair value of US$89.53, suggesting it may be undervalued based on discounted cash flow analysis. The company recently reported a strong turnaround with Q1 earnings of US$493 million compared to a loss last year and expects revenue between US$4.20 billion and US$4.40 billion for the next quarter. Despite debt not being well-covered by operating cash flow, earnings are forecasted to grow significantly above the market average over the next three years.
Birkenstock Holding
Overview: Birkenstock Holding plc is a company that manufactures and sells footwear products, with a market capitalization of approximately $8.75 billion.
Operations: The company's revenue segments are Europe (€616.54 million), Americas (€905.60 million), and APMA (Asia Pacific, Middle East, Africa) (€196.26 million).