In This Article:
As global markets show signs of resilience, with some indices reaching record highs and small-cap stocks outperforming amid falling consumer prices in the U.S., investors are keenly observing market dynamics. In such a climate, identifying stocks that may be trading below their estimated fair value could present opportunities for those looking to diversify or optimize their portfolios in line with current economic conditions.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| DXN Holdings Bhd (KLSE:DXN) | MYR0.635 | MYR1.27 | 50% |
| MaxiPARTS (ASX:MXI) | A$1.945 | A$3.88 | 49.9% |
| DO & CO (WBAG:DOC) | €167.00 | €330.65 | 49.5% |
| VEEM (ASX:VEE) | A$1.78 | A$3.54 | 49.8% |
| Shanghai Milkground Food Tech (SHSE:600882) | CN¥13.50 | CN¥26.97 | 49.9% |
| Harvard Bioscience (NasdaqGM:HBIO) | US$3.32 | US$6.63 | 49.9% |
| Terveystalo Oyj (HLSE:TTALO) | €9.55 | €18.99 | 49.7% |
| Musti Group Oyj (HLSE:MUSTI) | €26.70 | €52.86 | 49.5% |
| Zylox-Tonbridge Medical Technology (SEHK:2190) | HK$11.00 | HK$22.00 | 50% |
| Nexxen International (AIM:NEXN) | £2.36 | £4.71 | 49.8% |
Let's dive into some prime choices out of from the screener.
Carpenter Technology
Overview: Carpenter Technology Corporation specializes in manufacturing, fabricating, and distributing specialty metals across the United States, Europe, Asia Pacific, Mexico, and Canada with a market cap of approximately $5.51 billion.
Operations: The company generates revenue primarily through its Specialty Alloys Operations and Performance Engineered Products segments, which respectively brought in $2.40 billion and $418.50 million.
Estimated Discount To Fair Value: 20.8%
Carpenter Technology, priced at US$116.78, trades 20.9% below its estimated fair value of US$147.54, highlighting significant undervaluation based on discounted cash flows. Despite a high debt level and recent insider selling, CRS is poised for robust earnings growth, forecasted at 27.38% annually over the next three years—outpacing the US market projection of 14.8%. Recent index adjustments reflect mixed market perceptions, yet the firm's strategic inclusion in growth indices underscores its potential resilience and growth trajectory.
Silergy
Overview: Silergy Corp., with a market cap of NT$170.47 billion, specializes in the design, manufacture, and sale of integrated circuit products along with providing related technical services both in China and globally.