3 US Stocks That May Be Trading Below Their Estimated Value
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As the United States market navigates a period of mixed performance, with the Dow Jones Industrial Average reaching new highs while the Nasdaq Composite experiences fluctuations, investors are keenly watching for signals from the Federal Reserve on potential interest rate cuts. Amid this dynamic environment, identifying undervalued stocks becomes crucial for those looking to capitalize on market opportunities. In this article, we will explore three U.S. stocks that may be trading below their estimated value, offering potential upside as investors assess their fundamentals against current economic conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Kaspi.kz (NasdaqGS:KSPI) | $122.22 | $240.88 | 49.3% |
| First Solar (NasdaqGS:FSLR) | $233.31 | $465.98 | 49.9% |
| Phibro Animal Health (NasdaqGM:PAHC) | $21.53 | $42.63 | 49.5% |
| Duolingo (NasdaqGS:DUOL) | $234.00 | $467.36 | 49.9% |
| Heartland Financial USA (NasdaqGS:HTLF) | $56.66 | $111.54 | 49.2% |
| EQT (NYSE:EQT) | $33.55 | $65.85 | 49.1% |
| Trustmark (NasdaqGS:TRMK) | $32.55 | $64.98 | 49.9% |
| Progress Software (NasdaqGS:PRGS) | $58.16 | $114.81 | 49.3% |
| Vertex Pharmaceuticals (NasdaqGS:VRTX) | $489.43 | $961.04 | 49.1% |
| Bilibili (NasdaqGS:BILI) | $14.67 | $28.71 | 48.9% |
Let's uncover some gems from our specialized screener.
AppLovin
Overview: AppLovin Corporation develops a software-based platform to help advertisers improve marketing and monetization of their content globally, with a market cap of $37.63 billion.
Operations: AppLovin's revenue segments include $1.49 billion from Apps and $2.47 billion from its Software Platform.
Estimated Discount To Fair Value: 48.7%
AppLovin reported strong financial results for Q2 2024, with sales of US$1.08 billion and net income of US$309.97 million, both significantly higher than the previous year. Despite being dropped from multiple Russell indices in July 2024, the stock is trading at US$116.25, well below its estimated fair value of US$226.77 based on discounted cash flows (DCF). Forecasted earnings growth is robust at 24.19% annually over the next three years, outpacing market expectations.
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The analysis detailed in our AppLovin growth report hints at robust future financial performance.
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Delve into the full analysis health report here for a deeper understanding of AppLovin.
Intuit
Overview: Intuit Inc. provides financial management, compliance, and marketing products and services in the United States with a market cap of $183.68 billion.
Operations: The company's revenue segments include Pro-Tax ($599 million), Consumer ($4.45 billion), Credit Karma ($1.71 billion), and Small Business and Self-Employed ($9.53 billion).