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Over the last 7 days, the United States market has dropped 4.4%, while overall remaining flat over the past year, with earnings expected to grow by 13% annually. In this environment, identifying undervalued stocks can be crucial for investors looking to capitalize on potential growth opportunities that may not yet be reflected in current stock prices.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| NBT Bancorp (NasdaqGS:NBTB) | $39.64 | $78.07 | 49.2% |
| CareTrust REIT (NYSE:CTRE) | $28.06 | $54.41 | 48.4% |
| TowneBank (NasdaqGS:TOWN) | $31.29 | $62.34 | 49.8% |
| First National (NasdaqCM:FXNC) | $18.50 | $36.91 | 49.9% |
| Moog (NYSE:MOG.A) | $159.89 | $318.48 | 49.8% |
| First Bancorp (NasdaqGS:FBNC) | $37.05 | $72.67 | 49% |
| Ready Capital (NYSE:RC) | $4.37 | $8.65 | 49.5% |
| Washington Trust Bancorp (NasdaqGS:WASH) | $26.24 | $51.49 | 49% |
| Atlassian (NasdaqGS:TEAM) | $192.84 | $380.19 | 49.3% |
| Comstock Resources (NYSE:CRK) | $18.64 | $36.18 | 48.5% |
Let's uncover some gems from our specialized screener.
Microchip Technology
Overview: Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions across the Americas, Europe, and Asia with a market cap of approximately $20.74 billion.
Operations: The company's revenue segments include Semiconductor Products, generating $4.65 billion, and Technology Licensing, contributing $110.70 million.
Estimated Discount To Fair Value: 23.5%
Microchip Technology is trading at US$39.43, significantly below its estimated fair value of US$51.51, indicating it may be undervalued based on discounted cash flow analysis. Despite forecasted slower revenue growth than the market, Microchip's earnings are expected to grow substantially faster than the U.S. market over the next three years. However, its dividend yield of 4.62% is not well covered by earnings or free cash flows, and recent financial results show a net loss and lower profit margins compared to last year.
NBT Bancorp
Overview: NBT Bancorp Inc. is a financial holding company offering commercial banking, retail banking, and wealth management services, with a market cap of approximately $1.88 billion.
Operations: The company generates revenue primarily from its Community Banking Industry segment, totaling approximately $557.34 million.