In This Article:
As the U.S. stock market steadies after a significant selloff, investor attention is now focused on upcoming earnings reports and the Federal Reserve's policy meeting. In this climate of cautious optimism, identifying stocks that may be undervalued based on intrinsic value estimates could present opportunities for investors looking to navigate these uncertain times.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Argan (NYSE:AGX) | $137.36 | $273.30 | 49.7% |
| First National (NasdaqCM:FXNC) | $24.77 | $48.65 | 49.1% |
| Berkshire Hills Bancorp (NYSE:BHLB) | $28.65 | $56.59 | 49.4% |
| German American Bancorp (NasdaqGS:GABC) | $39.94 | $78.06 | 48.8% |
| Heartland Financial USA (NasdaqGS:HTLF) | $66.43 | $129.40 | 48.7% |
| Western Alliance Bancorporation (NYSE:WAL) | $94.00 | $184.90 | 49.2% |
| Privia Health Group (NasdaqGS:PRVA) | $22.87 | $44.59 | 48.7% |
| Ubiquiti (NYSE:UI) | $392.09 | $770.21 | 49.1% |
| Tenable Holdings (NasdaqGS:TENB) | $44.19 | $86.65 | 49% |
| RXO (NYSE:RXO) | $26.81 | $52.21 | 48.6% |
We'll examine a selection from our screener results.
Dayforce
Overview: Dayforce Inc. is a human capital management (HCM) software company operating in the United States, Canada, and internationally, with a market cap of $11.20 billion.
Operations: The company's revenue is primarily derived from its Human Capital Management (HCM) segment, which generated $1.69 billion.
Estimated Discount To Fair Value: 24.3%
Dayforce is trading at US$72.35, significantly below its estimated fair value of US$95.62, suggesting it might be undervalued based on cash flows. The company's earnings are forecast to grow rapidly at 37% annually, surpassing the broader U.S. market growth rate of 14.7%. Recent product innovations like Dayforce AI Agents and Strategic Workforce Planning enhance operational efficiency and employee productivity, potentially driving future revenue growth beyond the current forecast of 11.6% per year.
RXO
Overview: RXO, Inc. offers full truckload freight transportation brokering services and has a market cap of $4.16 billion.
Operations: The company's revenue is primarily derived from its transportation trucking segment, totaling $3.86 billion.
Estimated Discount To Fair Value: 48.6%
RXO is trading at US$26.81, well below its estimated fair value of US$52.21, indicating potential undervaluation based on cash flows. Despite a net loss of US$243 million in Q3 2024, revenue grew to US$1.04 billion from the previous year. Earnings are projected to grow significantly at over 100% annually as RXO seeks M&A opportunities and has a share repurchase authorization worth US$125 million, supporting strategic growth initiatives.