Yahoo Finance 3 US Stocks Estimated To Be Up To 49.4% Below Intrinsic Value
The recent declines in the S&P 500 and Nasdaq Composite, driven by a slump in chip stocks and anticipation of Big Tech earnings, have highlighted the market's volatility. Amid these fluctuations, identifying undervalued stocks can be crucial for investors seeking opportunities to capitalize on potential price corrections.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Marriott Vacations Worldwide (NYSE:VAC) | $87.23 | $169.56 | 48.6% |
Oddity Tech (NasdaqGM:ODD) | $39.54 | $78.77 | 49.8% |
DoubleVerify Holdings (NYSE:DV) | $21.58 | $42.65 | 49.4% |
Bank of Marin Bancorp (NasdaqCM:BMRC) | $21.32 | $41.87 | 49.1% |
Sachem Capital (NYSEAM:SACH) | $2.56 | $4.97 | 48.5% |
Duckhorn Portfolio (NYSE:NAPA) | $7.32 | $14.39 | 49.1% |
Harvard Bioscience (NasdaqGM:HBIO) | $3.33 | $6.57 | 49.3% |
Vasta Platform (NasdaqGS:VSTA) | $2.95 | $5.74 | 48.6% |
Zynex (NasdaqGS:ZYXI) | $8.22 | $15.94 | 48.4% |
Reddit (NYSE:RDDT) | $58.44 | $113.27 | 48.4% |
Here's a peek at a few of the choices from the screener.
Progress Software
Overview: Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally, with a market cap of approximately $2.50 billion.
Operations: The company generates $711.72 million from its software products designed to develop, deploy, and manage high-impact applications.
Estimated Discount To Fair Value: 43.5%
Progress Software appears undervalued based on cash flow analysis, trading at US$59 against an estimated fair value of US$104.4. Despite high debt levels, its earnings are forecast to grow significantly at 21.17% annually over the next three years, outpacing the broader US market's growth rate. Recent product releases like MarkLogic FastTrack and LoadMaster 360 enhance its data analytics and cybersecurity capabilities, potentially boosting future cash flows and supporting its undervaluation thesis.
United Community Banks
Overview: United Community Banks, Inc. is a financial holding company for United Community Bank, offering financial products and services across various sectors including commercial, retail, government, education, energy, health care and real estate with a market cap of $3.67 billion.
Operations: The company generates $828.86 million from its Community Banking segment.
Estimated Discount To Fair Value: 32.7%
United Community Banks is trading at US$31.07, significantly below its estimated fair value of US$46.13, indicating it may be undervalued based on cash flows. Earnings are forecast to grow 25.36% annually, outpacing the broader US market's growth rate of 14.9%. Despite a decline in profit margins from 32% to 22.3%, recent earnings reports show steady net income growth and reliable dividends, reinforcing its potential as an undervalued investment opportunity based on cash flows.
DoubleVerify Holdings
Overview: DoubleVerify Holdings, Inc. offers a software platform for digital media measurement and data analytics both in the United States and internationally, with a market cap of $3.49 billion.
Operations: The company's revenue segment includes Data Processing, which generated $590.73 million.
Estimated Discount To Fair Value: 49.4%
DoubleVerify Holdings reported Q2 2024 earnings with sales of US$155.89 million, up from US$133.74 million a year ago, though net income declined to US$7.47 million from US$12.84 million. Despite recent volatility and shareholder dilution, the stock trades at 49% below its estimated fair value of US$42.65, suggesting it is undervalued based on cash flows. Earnings are forecast to grow annually by 20.9%, outpacing the broader market's growth rate, supported by strategic partnerships and technological advancements in ad verification.
Where To Now?
Take a closer look at our Undervalued US Stocks Based On Cash Flows list of 190 companies by clicking here.
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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.
Companies discussed in this article include NasdaqGS:PRGS NasdaqGS:UCBI and NYSE:DV.
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