Discover XD And 2 More Stocks Estimated To Be Trading At A Discount
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In the wake of a U.S. election resulting in a "red sweep," global markets have seen significant movements, with major benchmarks like the S&P 500 reaching record highs amid expectations of policy shifts that could influence growth and inflation. As investors navigate these changing economic landscapes, identifying undervalued stocks becomes crucial; such stocks often present opportunities when their intrinsic value appears higher than their current market price, particularly in times of market optimism and regulatory changes.
Top 10 Undervalued Stocks Based On Cash Flows
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| UMB Financial (NasdaqGS:UMBF) | US$122.86 | US$245.13 | 49.9% |
| Taiwan Union Technology (TPEX:6274) | NT$156.00 | NT$311.03 | 49.8% |
| KMC (Kuei Meng) International (TWSE:5306) | NT$125.00 | NT$249.85 | 50% |
| PharmaResearch (KOSDAQ:A214450) | ?219000.00 | ?437485.60 | 49.9% |
| Cambi (OB:CAMBI) | NOK15.10 | NOK30.14 | 49.9% |
| TBC Bank Group (LSE:TBCG) | ￡31.35 | ￡62.68 | 50% |
| Afya (NasdaqGS:AFYA) | US$16.16 | US$32.25 | 49.9% |
| Decisive Dividend (TSXV:DE) | CA$6.05 | CA$12.06 | 49.8% |
| XPEL (NasdaqCM:XPEL) | US$45.46 | US$90.91 | 50% |
| Grupo Traxión. de (BMV:TRAXION A) | MX$19.39 | MX$38.77 | 50% |
Let's take a closer look at a couple of our picks from the screened companies.
XD
Overview: XD Inc. is an investment holding company that focuses on developing, publishing, operating, and distributing mobile and web games in Mainland China and internationally, with a market cap of HK$10.17 billion.
Operations: The company's revenue segments consist of CN￥2.43 billion from Game operations and CN￥1.43 billion from the TapTap Platform.
Estimated Discount To Fair Value: 49.6%
XD is trading at HK$22.4, significantly below its estimated fair value of HK$44.41, indicating potential undervaluation based on cash flows. The company's earnings are expected to grow substantially at 51.9% annually over the next three years, outpacing the Hong Kong market's growth rate of 11.7%. Despite past shareholder dilution, XD became profitable this year with net income rising from CNY 90.19 million to CNY 205.1 million in the first half of 2024.
Electric Connector Technology
Overview: Electric Connector Technology Co., Ltd. focuses on the research, design, development, manufacture, sale, and marketing of electronic connectors and interconnection system products globally with a market cap of CN￥19.95 billion.