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As U.S. stock futures point to a lower open amid concerns about Chinese advances in artificial intelligence, the market is experiencing heightened volatility, particularly within the tech sector. In such a climate, identifying undervalued stocks can be crucial for investors seeking opportunities that may offer potential value despite broader market uncertainties.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| First National (NasdaqCM:FXNC) | $24.50 | $48.65 | 49.6% |
| Berkshire Hills Bancorp (NYSE:BHLB) | $28.32 | $56.60 | 50% |
| German American Bancorp (NasdaqGS:GABC) | $39.23 | $78.06 | 49.7% |
| Meridian (NasdaqGS:MRBK) | $15.90 | $31.52 | 49.6% |
| Privia Health Group (NasdaqGS:PRVA) | $22.58 | $44.59 | 49.4% |
| FrontView REIT (NYSE:FVR) | $16.84 | $32.15 | 47.6% |
| BeiGene (NasdaqGS:ONC) | $222.08 | $438.07 | 49.3% |
| Bilibili (NasdaqGS:BILI) | $16.89 | $33.13 | 49% |
| Tenable Holdings (NasdaqGS:TENB) | $43.39 | $86.65 | 49.9% |
| Equifax (NYSE:EFX) | $268.82 | $534.36 | 49.7% |
Below we spotlight a couple of our favorites from our exclusive screener.
Veracyte
Overview: Veracyte, Inc. is a diagnostics company that operates both in the United States and internationally, with a market cap of approximately $3.40 billion.
Operations: The company's revenue is primarily derived from its diagnostic products segment, which generated $425.33 million.
Estimated Discount To Fair Value: 34%
Veracyte, Inc. reported a significant turnaround with a net income of US$15.16 million for Q3 2024 compared to a loss the previous year, alongside raising its full-year revenue guidance to US$442-445 million. The stock is trading at 34% below its estimated fair value of US$66.33 and is expected to achieve profitability within three years, indicating potential undervaluation based on cash flows despite low forecasted return on equity.
Tenable Holdings
Overview: Tenable Holdings, Inc. offers cyber exposure solutions across various regions including the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan, with a market cap of approximately $5.21 billion.
Operations: The company's revenue is primarily derived from its Security Software & Services segment, amounting to $877.60 million.
Estimated Discount To Fair Value: 49.9%
Tenable Holdings' stock is trading at US$43.39, significantly below its estimated fair value of US$86.65, highlighting potential undervaluation based on cash flows. The company is expected to achieve profitability within three years and has a forecasted earnings growth rate of 56.77% per year, which is above average market growth. Despite slower revenue growth projections at 9.3% annually, Tenable's strategic innovations in cybersecurity strengthen its market position amidst recent leadership changes.