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Top US Value Stock Picks For January 2025

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As the U.S. stock market concludes a strong year with a late downturn, major indices like the Dow and S&P 500 have experienced notable losses in December despite achieving significant gains throughout 2024. In this environment, identifying undervalued stocks becomes particularly important for investors looking to capitalize on potential opportunities amidst fluctuating market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name

Current Price

Fair Value (Est)

Discount (Est)

First Solar (NasdaqGS:FSLR)

$176.24

$350.71

49.7%

Camden National (NasdaqGS:CAC)

$42.74

$84.45

49.4%

Ally Financial (NYSE:ALLY)

$36.01

$71.71

49.8%

HealthEquity (NasdaqGS:HQY)

$95.95

$189.22

49.3%

Kanzhun (NasdaqGS:BZ)

$13.80

$26.99

48.9%

LifeMD (NasdaqGM:LFMD)

$4.95

$9.82

49.6%

Mr. Cooper Group (NasdaqCM:COOP)

$96.01

$188.12

49%

Progress Software (NasdaqGS:PRGS)

$65.15

$129.60

49.7%

South Atlantic Bancshares (OTCPK:SABK)

$15.94

$30.95

48.5%

Repligen (NasdaqGS:RGEN)

$143.94

$280.90

48.8%

Click here to see the full list of 174 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Light & Wonder

Overview: Light & Wonder, Inc. is a cross-platform games company operating in the United States and internationally, with a market cap of approximately $7.53 billion.

Operations: The company's revenue is derived from three main segments: Gaming at $2.05 billion, Igaming at $293 million, and Sciplay at $821 million.

Estimated Discount To Fair Value: 34.2%

Light & Wonder appears undervalued based on discounted cash flow analysis, trading at US$86.38, below the estimated fair value of US$131.29. Despite lower net income in Q3 2024 compared to the previous year, earnings are forecast to grow significantly at 22.3% annually, outpacing the US market's average growth rate. The company is actively seeking strategic acquisitions and has completed a share buyback worth US$44 million, indicating financial discipline and potential for long-term value enhancement.

NasdaqGS:LNW Discounted Cash Flow as at Jan 2025
NasdaqGS:LNW Discounted Cash Flow as at Jan 2025

Bowhead Specialty Holdings

Overview: Bowhead Specialty Holdings Inc. offers specialty property and casualty insurance products in the United States with a market cap of $1.13 billion.

Operations: The company generates revenue of $389.14 million from its specialty property and casualty insurance products in the United States.