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As U.S. markets experience a period of volatility, with the Dow Jones and S&P 500 recently losing ground after a four-day winning streak, investors are keeping a close eye on earnings reports and economic data that could influence market direction. In such an environment, identifying undervalued stocks can present opportunities for those looking to capitalize on potential discounts in the market.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Mid Penn Bancorp (NasdaqGM:MPB) | $27.77 | $54.03 | 48.6% |
| Trade Desk (NasdaqGM:TTD) | $53.97 | $106.40 | 49.3% |
| First Reliance Bancshares (OTCPK:FSRL) | $9.35 | $18.65 | 49.9% |
| Ready Capital (NYSE:RC) | $4.42 | $8.65 | 48.9% |
| Shift4 Payments (NYSE:FOUR) | $80.28 | $158.86 | 49.5% |
| Veracyte (NasdaqGM:VCYT) | $32.23 | $62.85 | 48.7% |
| Verra Mobility (NasdaqCM:VRRM) | $21.91 | $43.04 | 49.1% |
| StoneCo (NasdaqGS:STNE) | $13.75 | $26.97 | 49% |
| Constellium (NYSE:CSTM) | $9.30 | $18.52 | 49.8% |
| RXO (NYSE:RXO) | $13.48 | $26.56 | 49.3% |
Let's take a closer look at a couple of our picks from the screened companies.
Teradyne
Overview: Teradyne, Inc. is a company that designs, develops, manufactures, and sells automated test systems and robotics products globally with a market cap of $12.40 billion.
Operations: The company's revenue is primarily derived from its Semiconductor Test segment, which accounts for $2.12 billion, followed by the Robotics segment at $364.85 million.
Estimated Discount To Fair Value: 21.5%
Teradyne is trading at US$77.12, 21.5% below its estimated fair value of US$98.2, indicating potential undervaluation based on cash flows. The company's earnings are forecast to grow at 16.9% annually, outpacing the broader U.S. market's growth rate of 14.1%. Recent strategic initiatives include a partnership with ficonTEC for silicon photonics testing solutions, which could enhance revenue prospects amid expected annual revenue growth of 11.2%, above the U.S market average.
Ciena
Overview: Ciena Corporation is a network technology company that offers hardware, software, and services to network operators across multiple regions including the Americas, Europe, the Middle East, Africa, Asia Pacific, Japan, and India; it has a market cap of approximately $9.37 billion.
Operations: The company's revenue is primarily derived from Networking Platforms at $3.06 billion, followed by Global Services at $540.45 million, Platform Software and Services at $363.38 million, and Blue Planet Automation Software and Services at $89.71 million.