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As the U.S. stock market wraps up a strong year with a slight downturn, major indices like the Dow Jones Industrial Average and S&P 500 have experienced notable monthly losses despite impressive annual gains. In this context of fluctuating performance, identifying undervalued stocks becomes crucial for investors aiming to capitalize on potential market inefficiencies and intrinsic value discrepancies.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| First Solar (NasdaqGS:FSLR) | $176.24 | $350.71 | 49.7% |
| Camden National (NasdaqGS:CAC) | $42.74 | $84.45 | 49.4% |
| Ally Financial (NYSE:ALLY) | $36.01 | $71.71 | 49.8% |
| HealthEquity (NasdaqGS:HQY) | $95.95 | $189.22 | 49.3% |
| Kanzhun (NasdaqGS:BZ) | $13.80 | $26.99 | 48.9% |
| LifeMD (NasdaqGM:LFMD) | $4.95 | $9.82 | 49.6% |
| Mr. Cooper Group (NasdaqCM:COOP) | $96.01 | $188.12 | 49% |
| Progress Software (NasdaqGS:PRGS) | $65.15 | $129.60 | 49.7% |
| South Atlantic Bancshares (OTCPK:SABK) | $15.94 | $30.95 | 48.5% |
| Repligen (NasdaqGS:RGEN) | $143.94 | $280.90 | 48.8% |
Here's a peek at a few of the choices from the screener.
CyberArk Software
Overview: CyberArk Software Ltd. develops, markets, and sells software-based identity security solutions and services globally, with a market cap of approximately $13.93 billion.
Operations: The company generates revenue from its Security Software & Services segment, amounting to $909.46 million.
Estimated Discount To Fair Value: 29.8%
CyberArk Software is trading at US$333.15, significantly below its estimated fair value of US$474.53, suggesting it may be undervalued based on cash flows. The company's earnings and revenue are projected to grow faster than the US market, with earnings expected to increase by 32.3% annually. Recent product innovations like FuzzyAI and strategic partnerships enhance its growth potential despite a recent follow-on equity offering that could dilute shares further.
iRhythm Technologies
Overview: iRhythm Technologies, Inc. is a digital healthcare company that designs, develops, and commercializes device-based technology for ambulatory cardiac monitoring services to diagnose arrhythmias in the United States, with a market cap of approximately $2.72 billion.
Operations: The company's revenue is primarily generated from its Medical Labs & Research segment, which amounts to $560.03 million.