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As of September 30, 2024, the U.S. stock market has been performing exceptionally well, with the S&P 500 and Dow reaching record highs after a strong month and quarter. Investors are increasingly confident in the economy's trajectory, bolstered by expectations of further interest rate cuts from the Federal Reserve. In this favorable market environment, identifying undervalued stocks can be particularly rewarding. Here are three U.S. stocks estimated to be undervalued in October 2024 that could offer significant upside potential for investors looking to capitalize on current economic conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Heartland Financial USA (NasdaqGS:HTLF) | $56.70 | $112.73 | 49.7% |
California Resources (NYSE:CRC) | $52.47 | $104.38 | 49.7% |
KBR (NYSE:KBR) | $65.13 | $126.97 | 48.7% |
Symbotic (NasdaqGM:SYM) | $24.39 | $47.68 | 48.8% |
Tenable Holdings (NasdaqGS:TENB) | $40.52 | $78.94 | 48.7% |
Enphase Energy (NasdaqGM:ENPH) | $113.02 | $224.88 | 49.7% |
EVERTEC (NYSE:EVTC) | $33.89 | $66.21 | 48.8% |
ChromaDex (NasdaqCM:CDXC) | $3.65 | $7.10 | 48.6% |
Dingdong (Cayman) (NYSE:DDL) | $3.55 | $6.92 | 48.7% |
SunOpta (NasdaqGS:STKL) | $6.38 | $12.65 | 49.6% |
Here we highlight a subset of our preferred stocks from the screener.
KE Holdings
Overview: KE Holdings Inc. (NYSE: BEKE) operates an integrated online and offline platform for housing transactions and services in China, with a market cap of $24.18 billion.
Operations: The company's revenue segments include New Home Transaction Services (CN¥26.33 billion), Existing Home Transaction Services (CN¥25.42 billion), and Home Renovation and Furnishing (CN¥13.27 billion).
Estimated Discount To Fair Value: 32.5%
KE Holdings appears undervalued based on cash flows, trading at US$19.91, which is 32.5% below its estimated fair value of US$29.50. Despite recent impairment charges and a mixed earnings report for the first half of 2024, the company has shown robust revenue growth in Q2 2024 with CNY 23,370.43 million compared to CNY 19,483.92 million a year ago. Additionally, KE Holdings has increased its buyback authorization by $1 billion to $3 billion and extended the plan duration until August 31, 2025.
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Navigate through the intricacies of KE Holdings with our comprehensive financial health report here.
Levi Strauss
Overview: Levi Strauss & Co. designs, markets, and sells apparel and related accessories for men, women, and children worldwide, with a market cap of approximately $8.61 billion.