3 US Stocks Possibly Trading Below Their Estimated Value By Up To 49.6%

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In recent weeks, U.S. markets have experienced notable volatility, with major indexes like the S&P 500 and Dow Jones Industrial Average facing declines driven by downturns in technology and energy stocks. Amidst these fluctuations, investors are on the lookout for opportunities to identify stocks that might be trading below their intrinsic value, offering potential long-term growth despite current market pressures.

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

Name

Current Price

Fair Value (Est)

Discount (Est)

MidWestOne Financial Group (NasdaqGS:MOFG)

$29.33

$57.37

48.9%

Associated Banc-Corp (NYSE:ASB)

$22.40

$43.89

49%

Avidbank Holdings (OTCPK:AVBH)

$19.38

$37.87

48.8%

EverQuote (NasdaqGM:EVER)

$20.08

$39.69

49.4%

Vitesse Energy (NYSE:VTS)

$24.88

$49.19

49.4%

EVERTEC (NYSE:EVTC)

$33.36

$65.82

49.3%

AeroVironment (NasdaqGS:AVAV)

$214.11

$417.14

48.7%

Reddit (NYSE:RDDT)

$75.17

$149.14

49.6%

Cytek Biosciences (NasdaqGS:CTKB)

$5.34

$10.63

49.7%

SunOpta (NasdaqGS:STKL)

$6.36

$12.65

49.7%

Click here to see the full list of 194 stocks from our Undervalued US Stocks Based On Cash Flows screener.

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

KeyCorp

Overview: KeyCorp is a holding company for KeyBank National Association, offering a range of retail and commercial banking products and services in the United States, with a market cap of approximately $16.23 billion.

Operations: KeyBank National Association generates revenue through its Consumer Bank segment at $3.08 billion and Commercial Bank segment at $2.76 billion, offering diverse financial services across these areas.

Estimated Discount To Fair Value: 35.8%

KeyCorp is trading at US$17.49, significantly below its estimated fair value of US$27.23, indicating potential undervaluation based on discounted cash flow analysis. Despite a lower net profit margin this year compared to last, earnings are expected to grow significantly at 36.48% annually over the next three years. Recent strategic investment by The Bank of Nova Scotia could enhance financial stability and growth prospects, though dividend coverage remains a concern.

NYSE:KEY Discounted Cash Flow as at Oct 2024
NYSE:KEY Discounted Cash Flow as at Oct 2024

Reddit

Overview: Reddit, Inc. operates a website that organizes digital communities and has a market cap of $12.47 billion.

Operations: Revenue for Reddit, Inc. is primarily generated through its Internet Information Providers segment, amounting to $981.41 million.

Estimated Discount To Fair Value: 49.6%