In This Article:
As the U.S. market rebounds from a recent downturn, with major indices like the Dow Jones and S&P 500 showing signs of recovery, investors are eyeing opportunities amid ongoing economic uncertainties and policy developments. In this context, identifying stocks that may be undervalued can offer potential advantages, especially when considering companies like Advanced Micro Devices that could be trading below their intrinsic value estimates.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Dime Community Bancshares (NasdaqGS:DCOM) | $28.34 | $56.31 | 49.7% |
Atour Lifestyle Holdings (NasdaqGS:ATAT) | $31.29 | $61.41 | 49% |
Berkshire Hills Bancorp (NYSE:BHLB) | $26.15 | $51.75 | 49.5% |
Pure Storage (NYSE:PSTG) | $50.69 | $99.56 | 49.1% |
KBR (NYSE:KBR) | $51.05 | $101.68 | 49.8% |
Datadog (NasdaqGS:DDOG) | $103.97 | $206.31 | 49.6% |
Similarweb (NYSE:SMWB) | $9.30 | $18.51 | 49.7% |
Alaska Air Group (NYSE:ALK) | $55.15 | $109.03 | 49.4% |
Gold Royalty (NYSEAM:GROY) | $1.56 | $3.08 | 49.4% |
Driven Brands Holdings (NasdaqGS:DRVN) | $17.48 | $34.44 | 49.2% |
Let's take a closer look at a couple of our picks from the screened companies.
Advanced Micro Devices
Overview: Advanced Micro Devices, Inc. is a global semiconductor company with a market capitalization of approximately $163.62 billion.
Operations: Advanced Micro Devices generates revenue from several segments, including Client at $7.05 billion, Gaming at $2.60 billion, Embedded at $3.56 billion, and Data Center at $12.58 billion.
Estimated Discount To Fair Value: 48.7%
Advanced Micro Devices (AMD) appears undervalued based on discounted cash flow analysis, trading at US$104.59, significantly below the estimated fair value of US$203.69. Despite a recent fixed-income offering of $1.5 billion to strengthen its financial position, AMD's earnings are expected to grow 32% annually, outpacing the broader US market growth rate of 13.9%. The company's strategic product expansions and collaborations further enhance its potential for robust cash flow generation in competitive markets.
Workday
Overview: Workday, Inc. offers enterprise cloud applications globally, with a market capitalization of approximately $65.04 billion.
Operations: The company's revenue is primarily derived from its cloud applications segment, which generated $8.45 billion.