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As the U.S. stock market faces a year-end slump, with major indices like the S&P 500 on track for their worst month since April, investors are keenly observing potential opportunities amidst the downturn. In such volatile conditions, identifying stocks that may be trading below their estimated value can provide an intriguing prospect for those looking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Clear Secure (NYSE:YOU) | $27.07 | $53.24 | 49.2% |
| ConnectOne Bancorp (NasdaqGS:CNOB) | $22.70 | $43.79 | 48.2% |
| Oddity Tech (NasdaqGM:ODD) | $42.88 | $84.59 | 49.3% |
| Western Alliance Bancorporation (NYSE:WAL) | $83.57 | $164.32 | 49.1% |
| Lamb Weston Holdings (NYSE:LW) | $64.97 | $125.18 | 48.1% |
| HealthEquity (NasdaqGS:HQY) | $96.84 | $189.22 | 48.8% |
| WEX (NYSE:WEX) | $170.68 | $334.24 | 48.9% |
| LifeMD (NasdaqGM:LFMD) | $5.12 | $9.78 | 47.7% |
| Progress Software (NasdaqGS:PRGS) | $65.05 | $129.48 | 49.8% |
| South Atlantic Bancshares (OTCPK:SABK) | $15.40 | $29.97 | 48.6% |
Here we highlight a subset of our preferred stocks from the screener.
Hesai Group
Overview: Hesai Group develops, manufactures, and sells three-dimensional LiDAR solutions across Mainland China, Europe, North America, and internationally with a market cap of $1.72 billion.
Operations: Revenue Segments (in millions of CN¥):
Estimated Discount To Fair Value: 10.1%
Hesai Group is trading at US$14.7, slightly below its fair value estimate of US$16.35, indicating potential undervaluation based on cash flows. The company forecasts strong revenue growth of 30.1% annually, outpacing the US market average and expects to become profitable within three years. Recent partnerships with Changan Automobile and Leapmotor highlight its expanding role in automotive lidar technology, potentially boosting future cash flows despite a volatile share price history and current net losses reducing year-over-year.
Crane NXT
Overview: Crane NXT, Co. is an industrial technology company that offers technology solutions for securing, detecting, and authenticating important assets, with a market cap of approximately $3.32 billion.
Operations: The company's revenue is primarily derived from Crane Payment Innovations, which contributes $873.40 million, and Security and Authentication Technologies, accounting for $571.20 million.