In This Article:
Over the past week, the United States market has risen by 2.2%, contributing to an 8.2% increase over the last year, with earnings projected to grow by 14% annually in the coming years. In this environment of steady growth, identifying stocks that are estimated to be below their intrinsic value can offer investors potential opportunities for long-term gains.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| FB Financial (NYSE:FBK) | $44.62 | $89.12 | 49.9% |
| MINISO Group Holding (NYSE:MNSO) | $18.53 | $36.62 | 49.4% |
| MetroCity Bankshares (NasdaqGS:MCBS) | $28.33 | $55.11 | 48.6% |
| Owens Corning (NYSE:OC) | $144.46 | $284.31 | 49.2% |
| German American Bancorp (NasdaqGS:GABC) | $38.57 | $74.67 | 48.3% |
| Pure Storage (NYSE:PSTG) | $47.58 | $93.52 | 49.1% |
| Ready Capital (NYSE:RC) | $4.44 | $8.67 | 48.8% |
| HealthEquity (NasdaqGS:HQY) | $91.42 | $179.14 | 49% |
| Live Oak Bancshares (NYSE:LOB) | $26.93 | $52.48 | 48.7% |
| Coeur Mining (NYSE:CDE) | $5.45 | $10.87 | 49.8% |
Let's explore several standout options from the results in the screener.
AppLovin
Overview: AppLovin Corporation develops a software-based platform aimed at improving marketing and monetization for advertisers both in the United States and globally, with a market cap of approximately $104.07 billion.
Operations: AppLovin's revenue is derived from two main segments: Apps, generating $1.49 billion, and Advertising, contributing $3.22 billion.
Estimated Discount To Fair Value: 11.4%
AppLovin is trading at US$301.84, below its estimated fair value of US$340.64, indicating potential undervaluation based on cash flows. Despite impressive earnings growth of 344.3% over the past year and a forecasted annual profit growth rate of 22.5%, concerns arise from legal challenges alleging fraudulent advertising practices and high debt levels. The recent appointment of Maynard Webb to the board may strengthen governance amidst these issues, while M&A rumors involving TikTok suggest strategic expansion possibilities.
Bilibili
Overview: Bilibili Inc. offers online entertainment services targeting young audiences in China and has a market cap of $7.58 billion.
Operations: The company's revenue primarily comes from its Internet Information Providers segment, totaling CN¥26.83 billion.
Estimated Discount To Fair Value: 40.6%