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As of December 2024, global markets have been characterized by a divergence in major U.S. stock indexes, with growth stocks significantly outperforming value stocks amid record highs for the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite. In this environment of mixed economic signals and geopolitical uncertainties, identifying undervalued stocks requires a focus on companies that demonstrate strong fundamentals and potential for growth despite current market volatility.
Top 10 Undervalued Stocks Based On Cash Flows
Name | Current Price | Fair Value (Est) | Discount (Est) |
Round One (TSE:4680) | ¥1266.00 | ¥2527.81 | 49.9% |
NBT Bancorp (NasdaqGS:NBTB) | US$50.06 | US$99.93 | 49.9% |
Proya CosmeticsLtd (SHSE:603605) | CN¥92.22 | CN¥184.30 | 50% |
BMC Medical (SZSE:301367) | CN¥68.53 | CN¥136.81 | 49.9% |
Acerinox (BME:ACX) | €9.98 | €19.93 | 49.9% |
Grupo Traxión. de (BMV:TRAXION A) | MX$19.71 | MX$39.28 | 49.8% |
North Electro-OpticLtd (SHSE:600184) | CN¥11.08 | CN¥22.00 | 49.6% |
Sands China (SEHK:1928) | HK$20.20 | HK$40.33 | 49.9% |
Equifax (NYSE:EFX) | US$266.82 | US$530.98 | 49.7% |
iFLYTEKLTD (SZSE:002230) | CN¥51.82 | CN¥102.95 | 49.7% |
Let's uncover some gems from our specialized screener.
TXT e-solutions
Overview: TXT e-solutions S.p.A., along with its subsidiaries, offers software and service solutions both in Italy and internationally, with a market cap of €429.64 million.
Operations: The company's revenue segments consist of Smart Solutions (€57.03 million), Digital Advisory (€43.22 million), and Software Engineering (€184.35 million).
Estimated Discount To Fair Value: 42.8%
TXT e-solutions is trading at €35.55, significantly below its estimated fair value of €62.11, indicating potential undervaluation based on cash flows. The company reported strong earnings growth with third-quarter sales reaching €81.37 million and net income of €4.02 million, up from last year. Despite shareholder dilution and debt coverage concerns, TXT's earnings are expected to grow at 22.93% annually, outpacing the Italian market's forecasted growth rate of 7.1%.
Outokumpu Oyj
Overview: Outokumpu Oyj is a company that produces and sells stainless steel products across Finland, Europe, North America, the Asia-Pacific, and internationally with a market cap of €1.38 billion.
Operations: The company's revenue segments include €1.72 billion from the Americas, €491 million from Ferrochrome, and €4.21 billion from Europe (excluding Ferrochrome).