Over the last 7 days, the United States market has dropped 2.6%, yet it remains up by 9.1% over the past year with earnings forecasted to grow by 14% annually. In this environment, identifying stocks that may be priced below their estimated worth can provide opportunities for investors seeking value in a fluctuating 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)
$26.65
$52.26
49%
Burke & Herbert Financial Services (NasdaqCM:BHRB)
Overview: CompoSecure, Inc. specializes in the design and manufacture of metal, composite, and proprietary financial transaction cards for both domestic and international markets, with a market cap of approximately $1.35 billion.
Operations: CompoSecure generates revenue through the production and design of metal, composite, and proprietary financial transaction cards for markets in the United States and abroad.
Estimated Discount To Fair Value: 38.8%
CompoSecure is trading at US$13.22, significantly below its estimated fair value of US$21.61, suggesting undervaluation based on discounted cash flow analysis. Despite a decline in Q1 sales to US$59.82 million from the previous year's US$104.01 million, net income rose to US$21.49 million, highlighting improved profitability prospects with forecasted earnings growth of 99.72% annually and expected profitability within three years amidst innovative product launches like the MetaMask metal payment card.
Overview: Genius Sports Limited develops and sells technology-driven products and services for the sports, sports betting, and sports media industries, with a market cap of $2.38 billion.
Operations: The company generates revenue from its data processing segment, which amounts to $535.17 million.
Estimated Discount To Fair Value: 38.7%
Genius Sports, trading at US$10.1, is undervalued compared to its fair value of US$16.47 based on discounted cash flow analysis. Q1 2025 saw sales rise to US$143.99 million from US$119.72 million year-over-year, with net losses narrowing significantly to US$8.2 million from the previous year's loss of US$25.54 million. The company expects 21% revenue growth in 2025 and has launched innovative products like BetVision for Soccer, enhancing its market position and revenue potential through strategic partnerships and technological advancements.
Overview: Hess Midstream LP owns, operates, develops, and acquires midstream assets to provide fee-based services to Hess and third-party customers in the United States, with a market cap of $8.22 billion.
Operations: The company's revenue segments consist of Gathering at $814.60 million, Processing and Storage at $586.40 million, and Terminaling and Export at $120.90 million.
Estimated Discount To Fair Value: 46.1%
Hess Midstream, trading at US$38.16, is significantly undervalued with a fair value estimate of US$70.83 based on discounted cash flow analysis. Despite high debt levels and a dividend not fully covered by earnings or cash flows, the company's earnings are forecast to grow substantially at 32.5% annually over the next three years. Recent buyback announcements and reaffirmed guidance for 2025 underscore management's confidence in its financial trajectory amidst robust revenue growth expectations outpacing the market average.
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.
