Over the last 7 days, the United States market has experienced a slight decline of 1.4%, yet it has shown resilience with an 11% rise over the past year, and earnings are projected to grow by 14% annually. In this environment, identifying stocks that are estimated to be undervalued can present compelling investment opportunities for those looking to capitalize on potential market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name
Current Price
Fair Value (Est)
Discount (Est)
Berkshire Hills Bancorp (NYSE:BHLB)
$25.09
$50.02
49.8%
UMH Properties (NYSE:UMH)
$16.38
$32.38
49.4%
Super Group (SGHC) (NYSE:SGHC)
$8.37
$16.54
49.4%
Burke & Herbert Financial Services (NasdaqCM:BHRB)
Overview: Futu Holdings Limited operates as a digitalized securities brokerage and wealth management product distributor in Hong Kong and internationally, with a market cap of approximately $15.20 billion.
Operations: The company's revenue primarily comes from its online brokerage services and margin financing services, generating approximately HK$11.97 billion.
Estimated Discount To Fair Value: 19.5%
Futu Holdings is trading at US$111.44, below its estimated fair value of US$138.4, indicating it may be undervalued based on cash flows. Analysts expect earnings to grow by 19.1% annually, outpacing the broader U.S. market's 14.3%. Recent financials show robust growth with annual revenue reaching HKD 13.59 billion and net income at HKD 5.44 billion for 2024, highlighting strong operational performance despite no recent share buybacks being executed as planned.
Overview: Inter & Co, Inc., with a market cap of $3.06 billion, operates through its subsidiaries in banking and spending, investments, and insurance brokerage businesses.
Operations: The company's revenue is primarily derived from its banking and spending segment, which generated R$4.10 billion, followed by investments at R$261.13 million and insurance brokerage at R$196.98 million.
Estimated Discount To Fair Value: 15.8%
Inter & Co's recent earnings report shows net interest income of BRL 1.36 billion, up from BRL 992.42 million a year ago, with net income rising to BRL 286.59 million. Trading at US$7.11, below its estimated fair value of US$8.44, it appears undervalued based on cash flows despite a high bad loans ratio of 9.3%. Earnings and revenue are expected to grow significantly faster than the market over the next three years.
Overview: Corning Incorporated operates in the optical communications, display technologies, environmental technologies, specialty materials, and life sciences sectors both in the United States and internationally, with a market cap of approximately $41.26 billion.
Operations: Corning's revenue segments include Optical Communications at $5.08 billion, Display Technologies at $3.91 billion, Specialty Materials at $2.07 billion, Life Sciences at $977 million, and Hemlock and Emerging Growth Businesses at $1.25 billion.
Estimated Discount To Fair Value: 12.3%
Corning is trading at US$48.55, below its estimated fair value of US$55.37, suggesting it may be undervalued based on cash flows. Despite a lower net profit margin this year and significant insider selling recently, earnings are expected to grow 27.1% annually over the next three years, outpacing the US market's growth rate. Recent collaborations in AI and mobile technology with Broadcom and Samsung could bolster future revenue streams amidst high debt levels.
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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.
