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As the U.S. stock market experiences fluctuations with the S&P 500 and Nasdaq Composite recently retreating from record highs, investors are closely monitoring potential opportunities amid economic uncertainties and rising Treasury yields. In this environment, identifying stocks that may be trading below their estimated value can offer a strategic advantage, as these stocks often present a chance for growth when market conditions stabilize.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Argan (NYSE:AGX) | $142.45 | $277.95 | 48.8% |
| UMB Financial (NasdaqGS:UMBF) | $124.24 | $243.82 | 49% |
| NBT Bancorp (NasdaqGS:NBTB) | $50.97 | $99.93 | 49% |
| West Bancorporation (NasdaqGS:WTBA) | $23.65 | $46.42 | 49% |
| Equity Bancshares (NYSE:EQBK) | $47.67 | $92.60 | 48.5% |
| Privia Health Group (NasdaqGS:PRVA) | $21.62 | $43.17 | 49.9% |
| U.S. Physical Therapy (NYSE:USPH) | $96.29 | $187.03 | 48.5% |
| First Advantage (NasdaqGS:FA) | $19.65 | $39.02 | 49.6% |
| Vasta Platform (NasdaqGS:VSTA) | $2.205 | $4.33 | 49.1% |
| Marcus & Millichap (NYSE:MMI) | $40.94 | $81.25 | 49.6% |
Here we highlight a subset of our preferred stocks from the screener.
Inter & Co
Overview: Inter & Co, Inc. operates through its subsidiaries in the banking and spending, investments, and insurance brokerage sectors, with a market cap of $1.89 billion.
Operations: The company's revenue segments include Banking & Spending (R$3.57 billion), Inter Shop (R$272.22 million), Investments (R$243.48 million), and Insurance Brokerage (R$181.21 million).
Estimated Discount To Fair Value: 24.8%
Inter & Co. appears undervalued, trading 24.8% below its estimated fair value of US$6.09 per share, with significant earnings growth of 326.2% year-on-year and forecasts predicting continued robust growth of over 42% annually. Despite a high level of bad loans at 8.6%, the company reported strong Q3 results with net income rising to BRL 242.67 million from BRL 91.29 million a year earlier, indicating solid cash flow potential amidst challenges.
NBT Bancorp
Overview: NBT Bancorp Inc. is a financial holding company offering commercial banking, retail banking, and wealth management services with a market cap of approximately $2.37 billion.
Operations: The company's revenue is primarily derived from its Community Banking Industry segment, which generated $538.80 million.