In This Article:
As the U.S. stock market continues to navigate a mixed landscape with major indices showing varied movements, investors are keenly observing earnings reports and economic indicators for cues on potential opportunities. In such an environment, identifying stocks that may be trading below their estimated value can offer strategic entry points, particularly when the broader market exhibits signs of recovery or volatility.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Clear Secure (NYSE:YOU) | $27.08 | $53.36 | 49.2% |
| NBT Bancorp (NasdaqGS:NBTB) | $50.99 | $99.93 | 49% |
| First National (NasdaqCM:FXNC) | $23.66 | $46.63 | 49.3% |
| Peoples Financial Services (NasdaqGS:PFIS) | $58.76 | $115.39 | 49.1% |
| Synovus Financial (NYSE:SNV) | $58.67 | $115.67 | 49.3% |
| Equity Bancshares (NYSE:EQBK) | $49.21 | $98.42 | 50% |
| Pinterest (NYSE:PINS) | $30.51 | $59.52 | 48.7% |
| South Atlantic Bancshares (OTCPK:SABK) | $15.42 | $30.27 | 49.1% |
| Nutanix (NasdaqGS:NTNX) | $72.80 | $143.80 | 49.4% |
| Snap (NYSE:SNAP) | $11.60 | $22.72 | 49% |
We'll examine a selection from our screener results.
KeyCorp
Overview: KeyCorp is a holding company for KeyBank National Association, offering a range of retail and commercial banking products and services in the United States, with a market cap of approximately $19.43 billion.
Operations: The company generates revenue from its Consumer Bank segment, totaling $3.09 billion, and its Commercial Bank segment, amounting to $2.85 billion.
Estimated Discount To Fair Value: 28.5%
KeyCorp is trading at US$19.81, significantly below its estimated fair value of US$27.72, suggesting potential undervaluation based on discounted cash flow analysis. Despite a recent net loss and shareholder dilution, earnings are forecast to grow substantially at 71.7% annually, outpacing the market average. However, the current dividend yield of 4.14% may not be sustainable given coverage concerns and past profit margin declines from 18.8% to negative figures this year.
RXO
Overview: RXO, Inc. offers full truckload freight transportation brokering services and has a market cap of approximately $4.56 billion.
Operations: The company's revenue is primarily derived from its transportation segment, specifically trucking, which generates $3.86 billion.
Estimated Discount To Fair Value: 22%