In This Article:
As the U.S. stock market approaches record highs, buoyed by strong earnings reports and recent policy moves, investors are keenly observing opportunities that may be overlooked amidst the broader rally. In this environment, identifying undervalued stocks can offer potential for growth as market participants reassess their valuations in light of evolving economic conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Atlantic Union Bankshares (NYSE:AUB) | $38.27 | $75.53 | 49.3% |
| First Solar (NasdaqGS:FSLR) | $183.51 | $357.85 | 48.7% |
| Berkshire Hills Bancorp (NYSE:BHLB) | $28.72 | $56.94 | 49.6% |
| German American Bancorp (NasdaqGS:GABC) | $39.76 | $78.06 | 49.1% |
| Heartland Financial USA (NasdaqGS:HTLF) | $66.48 | $130.08 | 48.9% |
| Equity Bancshares (NYSE:EQBK) | $43.76 | $85.93 | 49.1% |
| Privia Health Group (NasdaqGS:PRVA) | $22.73 | $44.59 | 49% |
| Verra Mobility (NasdaqCM:VRRM) | $26.08 | $52.02 | 49.9% |
| Equifax (NYSE:EFX) | $272.27 | $534.41 | 49.1% |
| Coeur Mining (NYSE:CDE) | $6.37 | $12.61 | 49.5% |
Let's take a closer look at a couple of our picks from the screened companies.
Mobileye Global
Overview: Mobileye Global Inc. develops and deploys advanced driver assistance systems and autonomous driving technologies worldwide, with a market cap of approximately $12.99 billion.
Operations: The company generates revenue primarily from its Mobileye segment, amounting to $1.76 billion.
Estimated Discount To Fair Value: 43.2%
Mobileye Global is trading at US$16.67, significantly below its estimated fair value of US$29.35, suggesting it may be undervalued based on cash flows. Despite recent volatility and substantial operating losses, the company's earnings are forecast to grow rapidly and become profitable within three years, outpacing average market growth. Recent collaborations with Lyft highlight Mobileye's strategic advancements in autonomous vehicle technology, potentially enhancing its revenue prospects amidst ongoing global mobility projects.
Royal Gold
Overview: Royal Gold, Inc. is a company that acquires and manages precious metal streams, royalties, and related interests, with a market cap of approximately $9.11 billion.
Operations: The company's revenue is derived from two main segments: Streams, contributing $456.83 million, and Royalties, accounting for $205.76 million.