3 US Stocks That May Be Trading Below Their Estimated Intrinsic Value
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As the U.S. stock market reaches record highs, with the S&P 500 and Dow Jones Industrial Average posting their largest monthly gains of 2024, investors are increasingly interested in identifying stocks that may be trading below their intrinsic value. In this environment of optimism and heightened valuations, discerning a stock's true worth involves assessing its fundamentals against current market conditions to uncover potential opportunities for long-term growth.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| NBT Bancorp (NasdaqGS:NBTB) | $50.12 | $99.93 | 49.8% |
| UMB Financial (NasdaqGS:UMBF) | $125.49 | $243.56 | 48.5% |
| West Bancorporation (NasdaqGS:WTBA) | $23.87 | $46.83 | 49% |
| Business First Bancshares (NasdaqGS:BFST) | $28.50 | $55.00 | 48.2% |
| Five Star Bancorp (NasdaqGS:FSBC) | $32.95 | $63.89 | 48.4% |
| Advanced Energy Industries (NasdaqGS:AEIS) | $115.04 | $219.53 | 47.6% |
| South Atlantic Bancshares (OTCPK:SABK) | $15.40 | $30.26 | 49.1% |
| Snap (NYSE:SNAP) | $11.81 | $22.80 | 48.2% |
| Progress Software (NasdaqGS:PRGS) | $68.41 | $132.04 | 48.2% |
| Hesai Group (NasdaqGS:HSAI) | $8.18 | $16.30 | 49.8% |
Let's take a closer look at a couple of our picks from the screened companies.
Intuit
Overview: Intuit Inc. offers financial management, compliance, and marketing products and services in the United States with a market cap of approximately $179.71 billion.
Operations: The company's revenue segments include Pro-Tax at $596 million, Consumer at $4.43 billion, Credit Karma at $1.83 billion, and Global Business Solutions at $9.73 billion.
Estimated Discount To Fair Value: 30.6%
Intuit is trading at US$641.73, which is 30.6% below its estimated fair value of US$924.75, indicating potential undervaluation based on cash flows. The company's revenue for the first quarter was US$3.28 billion, up from US$2.98 billion a year ago, though net income decreased to US$197 million from US$241 million. Intuit's earnings are forecasted to grow annually by 17.4%, outpacing the broader U.S market growth rate of 15.4%.
KE Holdings
Overview: KE Holdings Inc. operates an integrated online and offline platform for housing transactions and services in China, with a market cap of approximately $22.79 billion.
Operations: The company's revenue segments include CN¥28.15 billion from New Home Transaction Services, CN¥25.33 billion from Existing Home Transaction Services, CN¥14.30 billion from Home Renovation and Furnishing, and CN¥8.91 billion from Emerging and Other Services (excluding Home Renovation and Furnishing).