In This Article:
The United States market has shown a positive trend, climbing by 6.8% over the past week and increasing by 5.9% over the last year, with earnings projected to grow by 14% annually in the coming years. In this environment, identifying stocks that may be trading below their estimated value can offer potential opportunities for investors looking to capitalize on these favorable conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| First National (NasdaqCM:FXNC) | $18.61 | $36.91 | 49.6% |
| Truist Financial (NYSE:TFC) | $36.18 | $72.26 | 49.9% |
| First Bancorp (NasdaqGS:FBNC) | $36.44 | $72.67 | 49.9% |
| Heritage Financial (NasdaqGS:HFWA) | $21.21 | $42.07 | 49.6% |
| First Reliance Bancshares (OTCPK:FSRL) | $9.35 | $18.55 | 49.6% |
| Flotek Industries (NYSE:FTK) | $6.60 | $13.07 | 49.5% |
| Bel Fuse (NasdaqGS:BELF.A) | $66.95 | $132.55 | 49.5% |
| Veracyte (NasdaqGM:VCYT) | $32.14 | $63.64 | 49.5% |
| Sotera Health (NasdaqGS:SHC) | $10.62 | $20.97 | 49.4% |
| CNX Resources (NYSE:CNX) | $30.67 | $60.67 | 49.4% |
Let's take a closer look at a couple of our picks from the screened companies.
Autodesk
Overview: Autodesk, Inc. offers 3D design, engineering, and entertainment technology solutions globally and has a market cap of approximately $55.05 billion.
Operations: The company's revenue comes primarily from its CAD/CAM software segment, which generated $6.13 billion.
Estimated Discount To Fair Value: 23.6%
Autodesk is trading at US$260.71, below its estimated fair value of US$341.21, suggesting it may be undervalued based on cash flows. Earnings are forecast to grow 14.31% annually, outpacing the broader U.S. market's growth expectations of 13.5%. Despite recent board changes and investor activism from Starboard Value LP, Autodesk maintains strong financial performance with significant operating margin and free cash flow improvements, supporting its strategic initiatives for sustained growth and efficiency.
Howmet Aerospace
Overview: Howmet Aerospace Inc. offers advanced engineered solutions for the aerospace and transportation sectors across multiple countries, with a market cap of approximately $50.90 billion.
Operations: The company's revenue is primarily derived from its Engine Products segment at $3.74 billion, followed by Fastening Systems at $1.58 billion, Forged Wheels at $1.05 billion, and Engineered Structures at $1.08 billion.