In This Article:
As the U.S. stock market pulls back from recent record highs, investors are closely monitoring economic indicators and Federal Reserve policies that could influence future trends. In this environment, identifying stocks that may be trading below their fair value can present opportunities for those looking to capitalize on potential market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Clear Secure (NYSE:YOU) | $26.98 | $53.27 | 49.4% |
| UMB Financial (NasdaqGS:UMBF) | $122.36 | $244.39 | 49.9% |
| Business First Bancshares (NasdaqGS:BFST) | $28.29 | $55.10 | 48.7% |
| West Bancorporation (NasdaqGS:WTBA) | $23.59 | $46.42 | 49.2% |
| Equity Bancshares (NYSE:EQBK) | $46.75 | $92.77 | 49.6% |
| U.S. Physical Therapy (NYSE:USPH) | $94.06 | $187.03 | 49.7% |
| Constellium (NYSE:CSTM) | $11.31 | $22.03 | 48.7% |
| Freshpet (NasdaqGM:FRPT) | $145.69 | $283.12 | 48.5% |
| Equifax (NYSE:EFX) | $265.29 | $529.48 | 49.9% |
| Marcus & Millichap (NYSE:MMI) | $40.82 | $81.04 | 49.6% |
We'll examine a selection from our screener results.
Veracyte
Overview: Veracyte, Inc. is a diagnostics company that operates in the United States and internationally, with a market cap of $3.37 billion.
Operations: The company generates revenue from its Diagnostic Products segment, amounting to $425.33 million.
Estimated Discount To Fair Value: 16.6%
Veracyte's recent financial performance indicates a positive turnaround with a net income of US$15.16 million in Q3 2024, compared to a loss last year. The company raised its revenue guidance for 2024, reflecting strong growth prospects. Although trading below fair value by approximately 16.6%, Veracyte's shares have experienced dilution over the past year. With expected annual profit growth above market averages and improving cash flows, Veracyte presents potential undervaluation based on these metrics.
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Our growth report here indicates Veracyte may be poised for an improving outlook.
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Take a closer look at Veracyte's balance sheet health here in our report.
CoStar Group
Overview: CoStar Group, Inc. offers information, analytics, and online marketplace services to professionals in the commercial real estate, hospitality, and residential sectors across various regions including the United States, with a market cap of approximately $31.80 billion.
Operations: The company's revenue segment includes Internet Information Providers, generating $2.67 billion.
Estimated Discount To Fair Value: 23.3%
CoStar Group's stock, trading at US$78.25, is undervalued by over 20% based on discounted cash flow analysis with a fair value estimate of US$101.99. Despite a decline in profit margins from 16.9% to 6.6%, earnings are expected to grow significantly at over 42% annually, outpacing the market average. Recent strategic moves include acquiring prime office space in Arlington for headquarters relocation, enhancing operational efficiency amidst ongoing revenue growth and expansion efforts.