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As the U.S. stock market experiences fluctuations driven by rising Treasury yields and mixed economic data, investors are closely monitoring opportunities that may arise from these shifts. In this environment, identifying undervalued stocks can be crucial for those looking to capitalize on potential market inefficiencies, especially as interest rate expectations continue to evolve.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Clear Secure (NYSE:YOU) | $26.94 | $53.02 | 49.2% |
| CareTrust REIT (NYSE:CTRE) | $26.42 | $51.17 | 48.4% |
| Camden National (NasdaqGS:CAC) | $42.01 | $83.84 | 49.9% |
| Afya (NasdaqGS:AFYA) | $15.03 | $29.34 | 48.8% |
| Ally Financial (NYSE:ALLY) | $35.78 | $69.58 | 48.6% |
| HealthEquity (NasdaqGS:HQY) | $98.69 | $189.22 | 47.8% |
| Constellium (NYSE:CSTM) | $10.47 | $20.81 | 49.7% |
| TeraWulf (NasdaqCM:WULF) | $6.13 | $11.77 | 47.9% |
| South Atlantic Bancshares (OTCPK:SABK) | $15.60 | $30.73 | 49.2% |
| Zillow Group (NasdaqGS:ZG) | $69.67 | $136.02 | 48.8% |
Let's explore several standout options from the results in the screener.
Equitable Holdings
Overview: Equitable Holdings, Inc. is a diversified financial services company operating worldwide with a market cap of approximately $15.48 billion.
Operations: The company's revenue segments include Asset Management ($4.30 billion), Group Retirement ($1.14 billion), Wealth Management ($1.72 billion), Protection Solutions ($3.31 billion), and Individual Retirement ($3.19 billion).
Estimated Discount To Fair Value: 10.3%
Equitable Holdings is trading at US$49.11, below its estimated fair value of US$54.75, indicating it may be undervalued based on cash flows. Despite recent revenue declines and a net loss in Q3 2024, the company is forecast to achieve robust earnings growth of over 50% annually and become profitable within three years. Revenue growth is expected to outpace the broader U.S. market, although dividend sustainability remains a concern due to inadequate earnings coverage.
Eli Lilly
Overview: Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide, with a market cap of approximately $688.92 billion.
Operations: Eli Lilly generates revenue from the discovery, development, manufacturing, marketing, and sales of pharmaceutical products amounting to $40.86 billion.