3 US Stocks That May Be Undervalued By Up To 48.9%

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As 2024 comes to a close, the U.S. stock market has experienced a mixed year-end performance, with major indices such as the Dow Jones Industrial Average and S&P 500 posting their largest monthly losses in over two years despite achieving notable annual gains. In this environment of fluctuating market dynamics, identifying undervalued stocks can be crucial for investors seeking potential opportunities amidst broader economic shifts.

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

Name

Current Price

Fair Value (Est)

Discount (Est)

Camden National (NasdaqGS:CAC)

$42.74

$84.44

49.4%

SideChannel (OTCPK:SDCH)

$0.034

$0.066

48.5%

Ally Financial (NYSE:ALLY)

$36.01

$71.77

49.8%

HealthEquity (NasdaqGS:HQY)

$95.95

$189.22

49.3%

Kanzhun (NasdaqGS:BZ)

$13.80

$27.00

48.9%

LifeMD (NasdaqGM:LFMD)

$4.95

$9.79

49.4%

Mr. Cooper Group (NasdaqCM:COOP)

$96.01

$189.50

49.3%

Progress Software (NasdaqGS:PRGS)

$65.15

$129.87

49.8%

South Atlantic Bancshares (OTCPK:SABK)

$15.94

$30.95

48.5%

Repligen (NasdaqGS:RGEN)

$143.94

$281.09

48.8%

Click here to see the full list of 173 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Kanzhun

Overview: Kanzhun Limited, with a market cap of approximately $5.99 billion, offers online recruitment services in the People's Republic of China through its subsidiaries.

Operations: The company generates its revenue primarily from its Internet Information Providers segment, which amounted to CN¥7.11 billion.

Estimated Discount To Fair Value: 48.9%

Kanzhun appears undervalued based on cash flow analysis, trading at US$13.8 compared to an estimated fair value of US$27. Its earnings grew significantly by 151.4% over the past year and are forecast to grow 25.31% annually, outpacing the broader U.S. market's expected growth rate of 14.9%. Despite a recent buyback completing with no further shares repurchased, revenue for Q3 increased from CNY 1,606.64 million to CNY 1,911.58 million year-on-year.

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

Heritage Financial

Overview: Heritage Financial Corporation is the bank holding company for Heritage Bank, offering a range of financial services to small and medium-sized businesses and individuals in the United States, with a market cap of $836.76 million.

Operations: The company's revenue is primarily derived from its banking segment, which generated $203.99 million.