3 US Stocks Estimated Up To 48.1% Undervalued Based On Intrinsic Value Estimates
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As U.S. markets navigate the complexities of rising inflation and fluctuating interest rates, investors are increasingly focused on identifying opportunities that may be undervalued in the current economic climate. In this context, understanding a stock's intrinsic value becomes crucial for discerning which investments might offer potential value despite broader market volatility.
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) | $18.71 | $37.36 | 49.9% |
| Celsius Holdings (NasdaqCM:CELH) | $21.28 | $42.43 | 49.8% |
| Incyte (NasdaqGS:INCY) | $69.05 | $135.32 | 49% |
| Sandy Spring Bancorp (NasdaqGS:SASR) | $33.52 | $64.66 | 48.2% |
| Similarweb (NYSE:SMWB) | $11.87 | $23.62 | 49.7% |
| Datadog (NasdaqGS:DDOG) | $148.09 | $287.04 | 48.4% |
| Constellium (NYSE:CSTM) | $9.40 | $18.32 | 48.7% |
| First Advantage (NasdaqGS:FA) | $19.69 | $38.21 | 48.5% |
| Kyndryl Holdings (NYSE:KD) | $41.15 | $81.37 | 49.4% |
| SolarEdge Technologies (NasdaqGS:SEDG) | $13.29 | $25.67 | 48.2% |
Let's dive into some prime choices out of the screener.
Mr. Cooper Group
Overview: Mr. Cooper Group Inc. operates as a non-bank servicer of residential mortgage loans in the United States and has a market capitalization of approximately $6.87 billion.
Operations: The company's revenue segments include $1.48 billion from Servicing and $416 million from Originations.
Estimated Discount To Fair Value: 44.2%
Mr. Cooper Group, with recent Q4 2024 earnings of US$204 million, is trading at US$106.71—44.2% below its estimated fair value of US$191.31—highlighting its potential undervaluation based on cash flows. Despite revenue growth forecasts slower than 20% annually, expected earnings growth of 22.3% per year outpaces the broader U.S. market's average and suggests robust future performance, though debt coverage by operating cash flow remains a concern.
Afya
Overview: Afya Limited is a Brazilian medical education group with a market cap of $1.52 billion.
Operations: The company's revenue segments include Undergrad at R$2.78 billion and Continuing Education at R$164.55 million, with a Segment Adjustment of R$244.29 million.
Estimated Discount To Fair Value: 48.1%
Afya is trading at US$16.82, significantly below its estimated fair value of US$32.42, suggesting potential undervaluation based on cash flows. Earnings are forecast to grow 21.8% annually, outpacing the U.S. market average of 14.6%. Recent earnings reports show strong performance with net income growth and increased revenue for Q3 2024 compared to the previous year, although revenue growth is expected to be slower than 20% per year going forward.