3 US Stocks Estimated To Be Undervalued By Up To 40.1%
With major U.S. indexes falling sharply amid a chip stock selloff and economic concerns, investors are increasingly seeking opportunities in undervalued stocks that may offer potential resilience. In this volatile market environment, identifying stocks estimated to be undervalued by up to 40.1% can provide a strategic advantage for those looking to capitalize on potential market corrections and long-term growth opportunities.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
MVB Financial (NasdaqCM:MVBF) | $22.06 | $43.30 | 49.1% |
Oracle (NYSE:ORCL) | $137.51 | $269.92 | 49.1% |
Veritex Holdings (NasdaqGM:VBTX) | $23.59 | $46.57 | 49.3% |
Trustmark (NasdaqGS:TRMK) | $33.13 | $64.82 | 48.9% |
BioMarin Pharmaceutical (NasdaqGS:BMRN) | $84.62 | $166.14 | 49.1% |
Enphase Energy (NasdaqGM:ENPH) | $109.68 | $214.32 | 48.8% |
Viant Technology (NasdaqGS:DSP) | $11.44 | $22.32 | 48.8% |
Sonos (NasdaqGS:SONO) | $13.09 | $26.16 | 50% |
BILL Holdings (NYSE:BILL) | $48.14 | $96.09 | 49.9% |
Live Nation Entertainment (NYSE:LYV) | $92.98 | $184.65 | 49.6% |
Below we spotlight a couple of our favorites from our exclusive screener.
Repligen
Overview: Repligen Corporation develops and commercializes bioprocessing technologies and systems for biological drug manufacturing globally, with a market cap of approximately $9.37 billion.
Operations: Repligen's revenue from medical products is $602.35 million.
Estimated Discount To Fair Value: 12.2%
Repligen, trading at US$165.67, is estimated to be undervalued with a fair value of US$188.67 based on discounted cash flow analysis. Despite recent earnings declines, the company projects revenue growth of 13.8% per year, outpacing the US market's 8.6%. With expected annual profit growth and no substantial insider selling recently reported, Repligen’s cash flow prospects suggest it may be an attractive opportunity for investors seeking undervalued stocks in the bioprocessing sector.
Equifax
Overview: Equifax Inc. (NYSE:EFX) operates as a data, analytics, and technology company with a market cap of approximately $34.57 billion.
Operations: The company's revenue segments include International ($1.32 billion), Workforce Solutions ($2.35 billion), and U.S. Information Solutions ($1.80 billion).
Estimated Discount To Fair Value: 40.1%
Equifax, trading at US$282.10, appears undervalued with a fair value estimated at US$470.59 based on discounted cash flow analysis. Recent earnings reports show an increase in net income to US$163.9 million for Q2 2024 from US$138.3 million a year ago. The company has also launched new verification solutions and partnered with Kompliant for advanced fraud management, enhancing its revenue streams and operational efficiency despite its high debt levels.
The analysis detailed in our Equifax growth report hints at robust future financial performance.
Delve into the full analysis health report here for a deeper understanding of Equifax.
Eli Lilly
Overview: Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide, with a market cap of $724.17 billion.
Operations: The company generates $35.93 billion from the discovery, development, manufacturing, marketing, and sales of pharmaceutical products.
Estimated Discount To Fair Value: 22%
Eli Lilly, trading at US$832.44, is significantly undervalued compared to its estimated fair value of US$1066.90 based on discounted cash flow analysis. The company’s earnings are forecast to grow 27.36% annually over the next three years, outpacing the broader U.S. market's growth expectations. Recent FDA approval of Kisunla for Alzheimer's and positive clinical trial results for other treatments bolster its revenue potential despite recent executive changes and being dropped from several Russell indexes.
Turning Ideas Into Actions
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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:RGEN NYSE:EFX and NYSE:LLY.
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