3 US Stocks That May Be Trading Below Estimated Fair Value

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As the U.S. stock market experiences a mixed performance amid anticipation of key economic data, investors are closely watching for signs that could influence interest rate decisions. With major indices showing slight fluctuations and economic indicators highlighting ongoing strength, identifying stocks that may be trading below their estimated fair value becomes increasingly relevant. In such an environment, a good stock might be one that demonstrates solid fundamentals and potential resilience against macroeconomic uncertainties.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name

Current Price

Fair Value (Est)

Discount (Est)

Clear Secure (NYSE:YOU)

$27.16

$53.27

49%

Dime Community Bancshares (NasdaqGS:DCOM)

$31.31

$61.52

49.1%

Afya (NasdaqGS:AFYA)

$15.08

$29.41

48.7%

Ally Financial (NYSE:ALLY)

$35.61

$69.71

48.9%

Mr. Cooper Group (NasdaqCM:COOP)

$93.54

$186.41

49.8%

Constellium (NYSE:CSTM)

$10.77

$20.78

48.2%

Sociedad Química y Minera de Chile (NYSE:SQM)

$39.04

$75.33

48.2%

Bilibili (NasdaqGS:BILI)

$16.78

$32.78

48.8%

South Atlantic Bancshares (OTCPK:SABK)

$15.78

$30.71

48.6%

Coeur Mining (NYSE:CDE)

$6.44

$12.59

48.8%

Click here to see the full list of 169 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Pegasystems

Overview: Pegasystems Inc. is a company that develops, markets, licenses, hosts, and supports enterprise software across various regions including the Americas, Europe, the Middle East, Africa, and Asia-Pacific with a market capitalization of approximately $8.06 billion.

Operations: The company's revenue segment for Software & Programming is $1.48 billion.

Estimated Discount To Fair Value: 30%

Pegasystems is trading at US$96.09, below its estimated fair value of US$137.29, suggesting it may be undervalued based on cash flows. Despite recent shareholder dilution, earnings are expected to grow significantly at 20.54% annually over the next three years, outpacing the broader U.S. market's growth expectations. However, revenue growth is forecasted to lag behind the market average. Recent product enhancements with AI capabilities could support future profitability improvements and operational efficiencies.

NasdaqGS:PEGA Discounted Cash Flow as at Jan 2025
NasdaqGS:PEGA Discounted Cash Flow as at Jan 2025

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 $7.01 billion.