Yahoo Finance 3 US Stocks Estimated To Be Trading Below Intrinsic Value
The U.S. stock market has recently experienced significant gains, with the S&P 500 and Nasdaq Composite posting their best performances since 2022 as economic fears ease and technology stocks rally. Amid this optimistic climate, investors are increasingly looking for opportunities to identify undervalued stocks that may be trading below their intrinsic value. In the current environment, a good stock is typically characterized by strong fundamentals, potential for growth, and resilience in fluctuating market conditions. Here are three U.S. stocks that analysts estimate to be trading below their intrinsic value.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Atour Lifestyle Holdings (NasdaqGS:ATAT) | $16.77 | $33.12 | 49.4% |
Pinnacle Financial Partners (NasdaqGS:PNFP) | $87.14 | $173.98 | 49.9% |
Cadence Bank (NYSE:CADE) | $29.70 | $59.29 | 49.9% |
Avidbank Holdings (OTCPK:AVBH) | $18.75 | $37.40 | 49.9% |
CrowdStrike Holdings (NasdaqGS:CRWD) | $240.52 | $475.72 | 49.4% |
Enphase Energy (NasdaqGM:ENPH) | $108.80 | $213.57 | 49.1% |
Global-E Online (NasdaqGS:GLBE) | $34.35 | $68.66 | 50% |
Live Nation Entertainment (NYSE:LYV) | $91.72 | $181.88 | 49.6% |
Bowhead Specialty Holdings (NYSE:BOW) | $26.95 | $53.26 | 49.4% |
Cytek Biosciences (NasdaqGS:CTKB) | $5.42 | $10.66 | 49.1% |
Underneath we present a selection of stocks filtered out by our screen.
CrowdStrike Holdings
Overview: CrowdStrike Holdings, Inc. provides cybersecurity solutions in the United States and internationally, with a market cap of approximately $56.14 billion.
Operations: CrowdStrike's revenue from Security Software & Services is $3.28 billion.
Estimated Discount To Fair Value: 49.4%
CrowdStrike Holdings is trading at $240.52, significantly below its estimated fair value of $475.72, suggesting it may be undervalued based on cash flows. Despite recent legal issues and insider selling, the company's revenue is forecast to grow 19.1% annually, outpacing the US market's average growth rate of 8.5%. Additionally, CrowdStrike's earnings are expected to grow 35.1% per year over the next three years, indicating strong future profitability potential despite current challenges.
Netflix
Overview: Netflix, Inc. provides entertainment services and has a market cap of approximately $262.43 billion.
Operations: Netflix's revenue from its streaming entertainment service is approximately $36.30 billion.
Estimated Discount To Fair Value: 22.4%
Netflix is trading at US$630.35, significantly below its estimated fair value of US$812.15, indicating potential undervaluation based on cash flows. The company's revenue and earnings are forecast to grow annually by 10.1% and 16%, respectively, outpacing the broader US market. Recent financial results show strong performance with Q2 sales of US$9.56 billion and net income of US$2.15 billion, reflecting robust operational efficiency despite ongoing fixed-income offerings and executive changes in key regions like India.
Insights from our recent growth report point to a promising forecast for Netflix's business outlook.
Navigate through the intricacies of Netflix with our comprehensive financial health report here.
Coupang
Overview: Coupang, Inc., with a market cap of $38.04 billion, operates a retail business through its mobile applications and Internet websites primarily in South Korea.
Operations: The company's revenue segments include Product Commerce, generating $25.18 billion, and Developing Offerings, contributing $2.00 billion.
Estimated Discount To Fair Value: 47.4%
Coupang reported Q2 2024 revenue of US$7.32 billion, up from US$5.84 billion a year ago, but faced a net loss of US$77 million against last year's net income of US$145 million. Despite the recent financial setback, Coupang is trading at $22.78, significantly below its estimated fair value of $43.34 based on discounted cash flow analysis. Earnings are forecast to grow 28.46% annually over the next three years, suggesting strong future profitability potential despite current challenges.
Our growth report here indicates Coupang may be poised for an improving outlook.
Get an in-depth perspective on Coupang's balance sheet by reading our health report here.
Where To Now?
Investigate our full lineup of 176 Undervalued US Stocks Based On Cash Flows right 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:CRWD NasdaqGS:NFLX and NYSE:CPNG.
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