3 US Stocks Estimated To Be Trading At Up To 44.2% Discount

The U.S. stock market has recently rebounded, with major indexes like the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average each adding 1.2% after a significant selloff last week. This recovery comes amidst a backdrop of economic uncertainty and fluctuating interest rate expectations. In such an environment, identifying undervalued stocks can be crucial for investors looking to capitalize on potential growth opportunities while mitigating risk.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name	Current Price	Fair Value (Est)	Discount (Est)
Kaspi.kz (NasdaqGS:KSPI)	$123.34	$243.56	49.4%
Peoples Financial Services (NasdaqGS:PFIS)	$44.30	$87.05	49.1%
Amdocs (NasdaqGS:DOX)	$84.91	$167.90	49.4%
Molina Healthcare (NYSE:MOH)	$327.48	$641.75	49%
Pure Storage (NYSE:PSTG)	$45.73	$90.02	49.2%
Progress Software (NasdaqGS:PRGS)	$57.65	$115.16	49.9%
Zscaler (NasdaqGS:ZS)	$156.78	$309.83	49.4%
Vasta Platform (NasdaqGS:VSTA)	$2.50	$4.97	49.7%
Sea (NYSE:SE)	$77.18	$151.22	49%
Hesai Group (NasdaqGS:HSAI)	$3.69	$7.22	48.9%

Click here to see the full list of 185 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

nCino

Overview: nCino, Inc., with a market cap of $3.47 billion, offers cloud-based software applications to financial institutions in the United States and internationally.

Operations: Revenue Segments (in millions of $): nCino generated $506.13 million from its Software & Programming segment.

Estimated Discount To Fair Value: 30%

nCino is trading at US$30.05, significantly below its estimated fair value of US$42.94, suggesting it may be undervalued based on cash flows. The company reported Q2 2024 revenue of US$132.4 million, up from US$117.24 million a year ago, with a reduced net loss of US$11.04 million compared to US$15.88 million previously. Revenue growth is forecasted at 14.5% annually, outpacing the market average of 8.5%. However, insider selling and past shareholder dilution are concerns to monitor.

• In light of our recent growth report, it seems possible that nCino's financial performance will exceed current levels.

• Click here and access our complete balance sheet health report to understand the dynamics of nCino.

NasdaqGS:NCNO Discounted Cash Flow as at Sep 2024

Netflix

Overview: Netflix, Inc. is a leading provider of entertainment services with a market cap of $289.87 billion.

Operations: Netflix generates $36.30 billion from its streaming entertainment service.

Estimated Discount To Fair Value: 15.5%

Netflix is trading at US$675.42, below its estimated fair value of US$798.92, indicating potential undervaluation based on cash flows. Earnings grew 67.1% over the past year and are forecast to grow 16% annually, outpacing the US market's 15%. Recent initiatives include a major production partnership with Pritish Nandy Communications and a $996 million fixed-income offering, which could strengthen its financial position further.

• Upon reviewing our latest growth report, Netflix's projected financial performance appears quite optimistic.

• Get an in-depth perspective on Netflix's balance sheet by reading our health report here.

NasdaqGS:NFLX Discounted Cash Flow as at Sep 2024

Annaly Capital Management

Overview: Annaly Capital Management, Inc., with a market cap of approximately $10.11 billion, is a diversified capital manager specializing in mortgage finance.

Operations: Annaly Capital Management generates revenue primarily from mortgage-backed securities, which contributed -$366.07 million.

Estimated Discount To Fair Value: 44.2%

Annaly Capital Management is trading at US$20.17, significantly below its estimated fair value of US$36.16, suggesting it may be undervalued based on cash flows. Despite a recent net loss of US$9.48 million for Q2 2024, the company has shown strong revenue growth forecasts and improving profitability over the next three years. However, dividends are not well covered by earnings and debt coverage remains a concern with operating cash flow insufficient to cover liabilities.

• Our expertly prepared growth report on Annaly Capital Management implies its future financial outlook may be stronger than recent results.

• Dive into the specifics of Annaly Capital Management here with our thorough financial health report.

NYSE:NLY Discounted Cash Flow as at Sep 2024

Next Steps

• Delve into our full catalog of 185 Undervalued US Stocks Based On Cash Flows here.

• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.

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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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:NCNO NasdaqGS:NFLX and NYSE:NLY.

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