In This Article:
In a week marked by significant declines across major U.S. indices, with the Dow experiencing its worst performance since October and the Nasdaq facing its largest drop in three months, investors are keenly searching for opportunities amid broader market volatility. Identifying stocks trading below their intrinsic values can offer potential value plays, especially when economic indicators and policy uncertainties weigh heavily on market sentiment.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Argan (NYSE:AGX) | $133.63 | $264.49 | 49.5% |
SouthState (NYSE:SSB) | $99.32 | $193.86 | 48.8% |
Atour Lifestyle Holdings (NasdaqGS:ATAT) | $31.26 | $59.85 | 47.8% |
Northwest Bancshares (NasdaqGS:NWBI) | $12.57 | $24.55 | 48.8% |
Old National Bancorp (NasdaqGS:ONB) | $23.46 | $45.45 | 48.4% |
KBR (NYSE:KBR) | $49.14 | $94.97 | 48.3% |
Cadre Holdings (NYSE:CDRE) | $33.58 | $64.79 | 48.2% |
Advanced Micro Devices (NasdaqGS:AMD) | $110.84 | $214.13 | 48.2% |
Haemonetics (NYSE:HAE) | $63.02 | $122.24 | 48.4% |
DoubleVerify Holdings (NYSE:DV) | $21.68 | $41.76 | 48.1% |
Let's dive into some prime choices out of the screener.
Analog Devices
Overview: Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits, software, and subsystems globally with a market cap of approximately $118.49 billion.
Operations: The company generates revenue of approximately $9.34 billion from designing, developing, manufacturing, and marketing a broad range of integrated circuits.
Estimated Discount To Fair Value: 13.3%
Analog Devices is trading at US$238.91, below its estimated fair value of US$275.56, suggesting it may be undervalued based on cash flows. Recent earnings showed a decline in net income to US$391.32 million from the previous year, with EPS also falling to $0.78 from $0.93. Despite lower profit margins and slower revenue growth forecasts compared to its historical performance, the company increased its dividend by 8% and expanded its buyback plan significantly by US$10 billion.
Charles Schwab
Overview: The Charles Schwab Corporation operates as a savings and loan holding company offering wealth management, securities brokerage, banking, asset management, custody, and financial advisory services both in the United States and internationally with a market cap of approximately $145.83 billion.