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As the S&P 500 and Nasdaq Composite reach record highs following positive employment data, investor confidence in the U.S. economy remains robust, with expectations of a potential Federal Reserve rate cut further fueling market optimism. In this environment, identifying undervalued stocks can be an effective strategy for investors seeking opportunities to capitalize on discrepancies between a company's intrinsic value and its current market price.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Clear Secure (NYSE:YOU) | $27.07 | $53.01 | 48.9% |
| NBT Bancorp (NasdaqGS:NBTB) | $50.06 | $99.93 | 49.9% |
| UMB Financial (NasdaqGS:UMBF) | $124.95 | $243.26 | 48.6% |
| West Bancorporation (NasdaqGS:WTBA) | $23.69 | $46.38 | 48.9% |
| DoubleVerify Holdings (NYSE:DV) | $20.67 | $40.99 | 49.6% |
| VSE (NasdaqGS:VSEC) | $118.63 | $234.64 | 49.4% |
| First Advantage (NasdaqGS:FA) | $19.82 | $39.01 | 49.2% |
| Vasta Platform (NasdaqGS:VSTA) | $2.20 | $4.31 | 48.9% |
| Equifax (NYSE:EFX) | $266.82 | $530.98 | 49.7% |
| Marcus & Millichap (NYSE:MMI) | $41.15 | $81.04 | 49.2% |
Let's review some notable picks from our screened stocks.
WesBanco
Overview: WesBanco, Inc. is a bank holding company for WesBanco Bank, Inc., with a market cap of approximately $2.43 billion.
Operations: WesBanco generates revenue primarily through its Community Banking segment, which accounts for $537.05 million, and its Trust and Investment Services segment, contributing $29.92 million.
Estimated Discount To Fair Value: 23%
WesBanco is trading at US$36.32, significantly below its estimated fair value of US$47.19, suggesting it may be undervalued based on cash flows. Despite recent shareholder dilution, the company maintains a reliable 4.07% dividend yield and anticipates strong revenue growth of 31.6% annually, well above the market average. Recent leadership changes aim to enhance operational excellence and strategic alignment, potentially supporting sustainable long-term growth amid evolving business needs.
Fiverr International
Overview: Fiverr International Ltd. operates a global online marketplace and has a market cap of approximately $1.25 billion.
Operations: Fiverr generates its revenue through its global online marketplace operations.
Estimated Discount To Fair Value: 33.6%
Fiverr International is trading at US$35.35, below its estimated fair value of US$53.22, highlighting potential undervaluation based on cash flows. The company has turned profitable this year, with earnings expected to grow significantly at 42.9% annually over the next three years—outpacing the broader US market growth rate of 15.5%. Despite slower revenue growth forecasts of 9.3% per year, it remains above the market average and supports a high future return on equity projection of 24.6%.