3 US Stocks That May Be Trading Below Their Estimated Value
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As the U.S. stock market continues to rally post-election, with major indices like the Dow Jones and S&P 500 reaching record highs, investors are increasingly optimistic about potential opportunities. In such a buoyant market environment, identifying stocks that may be trading below their estimated value can offer unique investment prospects for those looking to capitalize on undervalued assets.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Business First Bancshares (NasdaqGS:BFST) | $29.13 | $55.82 | 47.8% |
| Five Star Bancorp (NasdaqGS:FSBC) | $32.56 | $63.96 | 49.1% |
| Datadog (NasdaqGS:DDOG) | $124.45 | $246.86 | 49.6% |
| West Bancorporation (NasdaqGS:WTBA) | $23.93 | $46.88 | 49% |
| Proficient Auto Logistics (NasdaqGS:PAL) | $10.00 | $19.92 | 49.8% |
| Alaska Air Group (NYSE:ALK) | $51.00 | $98.15 | 48% |
| Alnylam Pharmaceuticals (NasdaqGS:ALNY) | $277.43 | $546.47 | 49.2% |
| Coeur Mining (NYSE:CDE) | $6.59 | $12.56 | 47.5% |
| Carter Bankshares (NasdaqGS:CARE) | $19.53 | $38.28 | 49% |
| Mobileye Global (NasdaqGS:MBLY) | $16.45 | $31.69 | 48.1% |
We'll examine a selection from our screener results.
Mr. Cooper Group
Overview: Mr. Cooper Group Inc., with a market cap of approximately $6.46 billion, operates as a non-bank servicer of residential mortgage loans in the United States through its subsidiaries.
Operations: The company's revenue is primarily derived from its Servicing segment, which generated $1.48 billion, and its Originations segment, contributing $416 million.
Estimated Discount To Fair Value: 40.2%
Mr. Cooper Group is trading at US$100.96, 40.2% below its estimated fair value of US$168.7, suggesting it is undervalued based on cash flows. Despite recent declines in quarterly revenue and net income, the company maintains a strong financial position with significant forecasted earnings growth of 25% annually over the next three years, outpacing the broader U.S. market's expected growth rate of 15.5%.
Range Resources
Overview: Range Resources Corporation is an independent company engaged in the production of natural gas, natural gas liquids, crude oil, and condensate in the United States with a market cap of approximately $7.97 billion.
Operations: The company's revenue is primarily generated from its Oil & Gas - Exploration & Production segment, which totaled $2.33 billion.