3 US Stocks Estimated To Be Trading Below Intrinsic Value

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As the U.S. stock market grapples with heightened volatility, driven by surging Treasury yields and a robust labor market, investors are increasingly on the lookout for opportunities that may be trading below their intrinsic value. In such an environment, identifying stocks that are undervalued can provide a strategic advantage, offering potential for growth despite broader economic uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name

Current Price

Fair Value (Est)

Discount (Est)

Clear Secure (NYSE:YOU)

$26.72

$53.44

50%

CareTrust REIT (NYSE:CTRE)

$26.08

$51.10

49%

Richardson Electronics (NasdaqGS:RELL)

$13.02

$25.75

49.4%

Cadence Bank (NYSE:CADE)

$33.51

$65.12

48.5%

Afya (NasdaqGS:AFYA)

$14.95

$29.44

49.2%

Palomar Holdings (NasdaqGS:PLMR)

$101.51

$194.71

47.9%

Constellium (NYSE:CSTM)

$10.35

$20.64

49.8%

Sociedad Química y Minera de Chile (NYSE:SQM)

$38.37

$75.19

49%

South Atlantic Bancshares (OTCPK:SABK)

$15.63

$30.72

49.1%

Annaly Capital Management (NYSE:NLY)

$18.14

$35.15

48.4%

Click here to see the full list of 172 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

AeroVironment

Overview: AeroVironment, Inc. specializes in designing, developing, and supporting robotic systems and related services for government agencies and businesses globally, with a market cap of approximately $4.62 billion.

Operations: The company's revenue segments consist of Maccready Works at $77.97 million, UnCrewed Systems at $422.42 million, and Loitering Munitions Systems at $261.11 million.

Estimated Discount To Fair Value: 41.3%

AeroVironment is trading at US$165.03, significantly below its estimated fair value of US$281.12, indicating potential undervaluation based on cash flows. Recent developments include a reaffirmed US$990 million contract for its Switchblade systems and innovative software upgrades enhancing the capabilities of its Puma UAS. Despite a decrease in net income to US$7.54 million for Q2 2024, earnings are forecast to grow substantially over the next three years, outpacing market averages.

NasdaqGS:AVAV Discounted Cash Flow as at Jan 2025
NasdaqGS:AVAV Discounted Cash Flow as at Jan 2025

Intapp

Overview: Intapp, Inc., through its subsidiary Integration Appliance, Inc., offers AI-powered solutions across the United States, the United Kingdom, and internationally with a market cap of approximately $5.19 billion.

Operations: The company generates revenue primarily from its Software & Programming segment, amounting to $447.75 million.