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As the U.S. stock market experiences mixed performances following a post-election rally that has begun to lose momentum, investors are recalibrating their expectations amid fluctuating interest rates and inflation data. In such an environment, identifying stocks that may be trading below their estimated value can offer potential opportunities for those 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) |
UMB Financial (NasdaqGS:UMBF) | $123.80 | $245.87 | 49.6% |
NBT Bancorp (NasdaqGS:NBTB) | $50.32 | $99.93 | 49.6% |
Business First Bancshares (NasdaqGS:BFST) | $28.58 | $55.58 | 48.6% |
Five Star Bancorp (NasdaqGS:FSBC) | $32.78 | $63.93 | 48.7% |
XPEL (NasdaqCM:XPEL) | $45.62 | $91.03 | 49.9% |
West Bancorporation (NasdaqGS:WTBA) | $23.98 | $46.86 | 48.8% |
Pinterest (NYSE:PINS) | $29.98 | $59.53 | 49.6% |
Privia Health Group (NasdaqGS:PRVA) | $21.84 | $43.16 | 49.4% |
South Atlantic Bancshares (OTCPK:SABK) | $15.36 | $30.28 | 49.3% |
Carter Bankshares (NasdaqGS:CARE) | $19.56 | $38.28 | 48.9% |
Let's dive into some prime choices out of the screener.
Genius Sports
Overview: Genius Sports Limited develops and sells technology-driven products and services for the sports, sports betting, and sports media industries, with a market cap of approximately $1.98 billion.
Operations: Genius Sports Limited generates revenue through its technology-led offerings tailored for the sports, sports betting, and sports media sectors.
Estimated Discount To Fair Value: 27.7%
Genius Sports is currently trading at US$9.59, below its estimated fair value of US$13.26, suggesting it may be undervalued based on discounted cash flows. Recently, the company reported a net income of US$12.51 million for Q3 2024, reversing a prior year's loss. Revenue growth is forecasted at 15% annually, outpacing the broader U.S. market's growth rate and indicating potential for future profitability within three years despite low projected return on equity.
Annaly Capital Management
Overview: Annaly Capital Management, Inc. is a diversified capital manager specializing in mortgage finance with a market capitalization of approximately $10.92 billion.
Operations: The company's revenue primarily comes from mortgage-backed securities, totaling $369.37 million.