Yahoo Finance 3 US Stocks Estimated To Be Undervalued
As of August 13, 2024, the U.S. stock market has been experiencing a notable upswing, with the S&P 500 and Nasdaq Composite closing higher for the fourth consecutive session amid a tech rally. This positive trend is bolstered by better-than-expected inflation data, which has fueled optimism about potential Federal Reserve interest rate cuts. In this environment of cautious optimism, identifying undervalued stocks can offer significant opportunities for investors looking to capitalize on market inefficiencies. Here are three U.S. stocks that are currently estimated to be undervalued based on various financial metrics and market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
SouthState (NYSE:SSB) | $87.97 | $173.07 | 49.2% |
Owens Corning (NYSE:OC) | $159.49 | $316.06 | 49.5% |
Associated Banc-Corp (NYSE:ASB) | $20.60 | $41.06 | 49.8% |
Pinnacle Financial Partners (NasdaqGS:PNFP) | $88.85 | $173.57 | 48.8% |
Oracle (NYSE:ORCL) | $134.26 | $267.85 | 49.9% |
Avidbank Holdings (OTCPK:AVBH) | $18.75 | $37.21 | 49.6% |
BILL Holdings (NYSE:BILL) | $48.00 | $95.23 | 49.6% |
Bowhead Specialty Holdings (NYSE:BOW) | $26.89 | $53.30 | 49.6% |
Cytek Biosciences (NasdaqGS:CTKB) | $5.35 | $10.65 | 49.8% |
Live Nation Entertainment (NYSE:LYV) | $91.87 | $181.78 | 49.5% |
Here's a peek at a few of the choices from the screener.
DoorDash
Overview: DoorDash, Inc. operates a commerce platform connecting merchants, consumers, and independent contractors in the U.S. and internationally, with a market cap of approximately $51.05 billion.
Operations: Revenue from Internet Information Providers amounts to $9.61 billion.
Estimated Discount To Fair Value: 45.1%
DoorDash is trading at US$127.94, significantly below its estimated fair value of US$233.17, indicating it may be undervalued based on cash flows. Despite recent insider selling and shareholder dilution, the company’s revenue is growing faster than the U.S. market average and earnings are forecast to grow substantially per year. Recent partnerships with Meals on Wheels America and Save A Lot highlight DoorDash's strategic expansion efforts, potentially enhancing future cash flows.
According our earnings growth report, there's an indication that DoorDash might be ready to expand.
Take a closer look at DoorDash's balance sheet health here in our report.
Zscaler
Overview: Zscaler, Inc. is a global cloud security company with a market cap of approximately $26.08 billion.
Operations: Zscaler generates revenue primarily from the sales of subscription services to its cloud platform and related support services, amounting to $2.03 billion.
Estimated Discount To Fair Value: 45.6%
Zscaler, trading at US$178.49, is significantly below its estimated fair value of US$328.31 based on cash flows, suggesting it is undervalued. The company’s revenue and earnings are forecast to grow faster than the U.S. market average, with expectations of profitability within three years. Recent strategic partnerships with SecureDynamics and Wipro enhance its service offerings and market position, potentially boosting future cash flows despite past shareholder dilution.
HubSpot
Overview: HubSpot, Inc. provides a cloud-based customer relationship management (CRM) platform for businesses globally and has a market cap of approximately $24.10 billion.
Operations: HubSpot generates its revenue primarily from its Internet Software & Services segment, which brought in $2.39 billion.
Estimated Discount To Fair Value: 11.2%
HubSpot, trading at US$484.61, is undervalued based on cash flows with an estimated fair value of US$545.92. Revenue is forecast to grow 14.9% annually, outpacing the U.S. market average of 8.6%. Despite a recent net loss reduction and improved earnings guidance for Q3 and FY2024, the stock fell due to shelved acquisition talks with Alphabet Inc., highlighting potential volatility but also future growth prospects as it aims for profitability within three years.
Our growth report here indicates HubSpot may be poised for an improving outlook.
Dive into the specifics of HubSpot here with our thorough financial health report.
Next Steps
Embark on your investment journey to our 177 Undervalued US Stocks Based On Cash Flows selection here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NasdaqGS:DASH NasdaqGS:ZS and NYSE:HUBS.
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