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Top ASX Stocks Estimated as Undervalued for Investment Opportunities in July 2024

In This Article:

As the Australian market navigates through varied sector performances with the ASX200 recently closing down slightly, opportunities for investment can emerge from analyzing undervalued stocks. Given current conditions, such as the recovery in iron ore prices and specific sector movements, identifying stocks that are priced below their intrinsic value could offer potential growth prospects for investors.

Top 10 Undervalued Stocks Based On Cash Flows In Australia

Name

Current Price

Fair Value (Est)

Discount (Est)

MaxiPARTS (ASX:MXI)

A$1.97

A$3.91

49.6%

GTN (ASX:GTN)

A$0.445

A$0.85

47.5%

ReadyTech Holdings (ASX:RDY)

A$3.21

A$6.25

48.6%

hipages Group Holdings (ASX:HPG)

A$1.055

A$2.09

49.5%

IPH (ASX:IPH)

A$6.20

A$11.98

48.3%

Regal Partners (ASX:RPL)

A$3.22

A$6.18

47.9%

Australian Clinical Labs (ASX:ACL)

A$2.51

A$4.74

47%

Strike Energy (ASX:STX)

A$0.235

A$0.44

46.9%

Millennium Services Group (ASX:MIL)

A$1.145

A$2.24

48.9%

SiteMinder (ASX:SDR)

A$5.09

A$10.01

49.2%

Click here to see the full list of 46 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener

Australian Clinical Labs

Overview: Australian Clinical Labs Limited operates in the pathology services sector within Australia and has a market capitalization of approximately A$503.26 million.

Operations: The company generates its revenue primarily from medical labs and research, totaling approximately A$674.03 million.

Estimated Discount To Fair Value: 47%

Australian Clinical Labs is trading at A$2.51, significantly below the estimated fair value of A$4.74, highlighting its undervaluation based on discounted cash flow analysis. Despite slower revenue growth forecasts at 4.6% annually compared to the market, ACL's earnings are expected to surge by 20.99% per year over the next three years, outpacing the Australian market's forecast of 13%. However, current profit margins have dipped to 2.3%, a decrease from last year's 9%, and financial results have been affected by large one-off items.

ASX:ACL Discounted Cash Flow as at Jul 2024
ASX:ACL Discounted Cash Flow as at Jul 2024

IPD Group

Overview: IPD Group Limited, operating in Australia, specializes in the distribution of electrical equipment and has a market capitalization of approximately A$485.89 million.

Operations: The company generates revenue through its Products Division, which brought in A$215.98 million, and its Services Division, which contributed A$20.79 million.