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Over the last 7 days, the United States market has experienced a slight decline of 1.7%, although it remains up by 3.6% over the past year, with earnings projected to grow by 13% annually. In such fluctuating conditions, identifying stocks that are potentially trading below their intrinsic value can present opportunities for investors seeking long-term growth at a discount.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
MetroCity Bankshares (NasdaqGS:MCBS) | $28.55 | $56.26 | 49.3% |
Truist Financial (NYSE:TFC) | $36.34 | $71.55 | 49.2% |
DoorDash (NasdaqGS:DASH) | $176.61 | $352.46 | 49.9% |
AGNC Investment (NasdaqGS:AGNC) | $8.45 | $16.73 | 49.5% |
Flotek Industries (NYSE:FTK) | $6.67 | $13.11 | 49.1% |
Verra Mobility (NasdaqCM:VRRM) | $21.89 | $43.36 | 49.5% |
First Advantage (NasdaqGS:FA) | $13.63 | $27.00 | 49.5% |
Sotera Health (NasdaqGS:SHC) | $10.64 | $20.91 | 49.1% |
CNX Resources (NYSE:CNX) | $30.29 | $60.47 | 49.9% |
Comstock Resources (NYSE:CRK) | $18.22 | $35.86 | 49.2% |
Below we spotlight a couple of our favorites from our exclusive screener.
AGNC Investment
Overview: AGNC Investment Corp., with a market cap of $7.74 billion, provides private capital to the housing market in the United States.
Operations: AGNC Investment Corp.'s revenue segments are not specified in the provided text.
Estimated Discount To Fair Value: 49.5%
AGNC Investment is trading at US$8.45, significantly below its estimated fair value of US$16.73, indicating potential undervaluation based on cash flows. Despite a forecasted earnings growth of 53.6% annually over the next three years, recent earnings showed a sharp decline with net income at US$50 million for Q1 2025 compared to US$443 million a year ago. The dividend yield remains high but isn't well covered by earnings or free cash flow, suggesting sustainability concerns.
Sportradar Group
Overview: Sportradar Group AG, along with its subsidiaries, provides sports data services across the United Kingdom, the United States, Malta, Switzerland, and internationally, with a market cap of approximately $6.89 billion.
Operations: The company's revenue primarily comes from its Data Processing segment, which generated €1.11 billion.
Estimated Discount To Fair Value: 30.3%
Sportradar Group is trading at US$25.04, below its estimated fair value of US$35.91, highlighting potential undervaluation based on cash flows. With an expected annual earnings growth of 34%, surpassing the US market's 13.3%, Sportradar's revenue is forecast to grow faster than the market average. Despite recent net loss for Q4 2024 and a follow-on equity offering, the company maintains a strong balance sheet with over $350 million in cash and no debt.