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As the U.S. stock market continues to reach new heights, with the S&P 500 recently setting a record high, investors are increasingly on the lookout for opportunities that may be undervalued amidst this rally. In such an environment, identifying stocks that are trading below their intrinsic value can offer potential growth opportunities, especially when broader market indices are performing strongly.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Provident Financial Services (NYSE:PFS) | $18.66 | $36.99 | 49.6% |
| CareTrust REIT (NYSE:CTRE) | $25.97 | $50.31 | 48.4% |
| Smurfit Westrock (NYSE:SW) | $55.30 | $109.74 | 49.6% |
| Sandy Spring Bancorp (NasdaqGS:SASR) | $33.88 | $64.49 | 47.5% |
| Incyte (NasdaqGS:INCY) | $71.27 | $134.85 | 47.1% |
| Array Technologies (NasdaqGM:ARRY) | $6.86 | $13.52 | 49.3% |
| Constellium (NYSE:CSTM) | $9.24 | $18.27 | 49.4% |
| First Advantage (NasdaqGS:FA) | $19.58 | $38.12 | 48.6% |
| Open Lending (NasdaqGM:LPRO) | $5.48 | $10.38 | 47.2% |
| Kyndryl Holdings (NYSE:KD) | $41.87 | $82.10 | 49% |
Let's dive into some prime choices out of the screener.
DexCom
Overview: DexCom, Inc. is a medical device company that specializes in the design, development, and commercialization of continuous glucose monitoring systems globally, with a market cap of approximately $34.80 billion.
Operations: The company's revenue is primarily derived from its patient monitoring equipment segment, which generated $4.03 billion.
Estimated Discount To Fair Value: 19.6%
DexCom is trading at US$90.53, below its estimated fair value of US$112.6, suggesting potential undervaluation based on cash flows. Revenue growth is projected to outpace the broader market at 12.9% annually, with earnings expected to grow 19.3% per year, surpassing market averages. Recent strategic initiatives include a partnership with OURA and a shelf registration filing for various securities, indicating proactive capital management and expansion efforts amid a competitive landscape.
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Click here and access our complete balance sheet health report to understand the dynamics of DexCom.
GeneDx Holdings
Overview: GeneDx Holdings Corp. is a genomics company that offers personalized health insights to aid in diagnosis, treatment, and drug discovery, with a market cap of approximately $2.10 billion.
Operations: GeneDx Holdings Corp. generates revenue by providing genomics-based personalized health insights that support diagnosis, treatment guidance, and drug discovery.