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As the U.S. stock market navigates a "sometimes-bumpy path" toward economic stability, highlighted by recent fluctuations in major indexes and cautious optimism from Fed Chair Jerome Powell, investors are keenly observing opportunities that may arise amidst these conditions. In such an environment, identifying stocks that appear undervalued can be particularly appealing, as they may offer potential for growth despite broader market uncertainties.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
UMB Financial (NasdaqGS:UMBF) | $122.86 | $245.13 | 49.9% |
Afya (NasdaqGS:AFYA) | $16.16 | $32.25 | 49.9% |
West Bancorporation (NasdaqGS:WTBA) | $23.90 | $46.85 | 49% |
Better Choice (NYSEAM:BTTR) | $1.80 | $3.52 | 48.9% |
XPEL (NasdaqCM:XPEL) | $45.46 | $90.91 | 50% |
Smith Douglas Homes (NYSE:SDHC) | $30.51 | $60.63 | 49.7% |
Privia Health Group (NasdaqGS:PRVA) | $21.69 | $43.16 | 49.7% |
Advanced Energy Industries (NasdaqGS:AEIS) | $112.15 | $219.26 | 48.9% |
South Atlantic Bancshares (OTCPK:SABK) | $15.50 | $30.27 | 48.8% |
Carter Bankshares (NasdaqGS:CARE) | $19.46 | $38.28 | 49.2% |
Let's dive into some prime choices out of the screener.
First Advantage
Overview: First Advantage Corporation offers employment background screening, identity, and verification solutions globally and has a market cap of $3.08 billion.
Operations: Revenue segments for First Advantage include employment background screening, identity, and verification solutions.
Estimated Discount To Fair Value: 48.3%
First Advantage appears undervalued based on cash flows, with its stock trading at US$17.85, significantly below the estimated fair value of US$34.52. Despite recent financial setbacks, including a Q3 net loss of US$8.86 million and declining profit margins from 5.5% to 0.6%, the company forecasts robust annual earnings growth of 57.1% and revenue growth of 37.2%, outpacing the broader U.S. market expectations.
Zillow Group
Overview: Zillow Group, Inc. operates real estate brands through mobile applications and websites in the United States, with a market cap of approximately $17.29 billion.
Operations: I'm sorry, but the revenue segment details are missing from the provided text. Could you please provide the relevant information on Zillow Group's revenue segments?
Estimated Discount To Fair Value: 20.4%