Exploring Undervalued US Stocks With Discounts Ranging From 16.9% To 39.5%

In the past year, the United States stock market has shown significant growth, rising by 21%, despite a flat performance over the last 7 days. In this context of promising annual earnings growth forecasted at 15%, identifying undervalued stocks can be particularly compelling for investors 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)
Hanover Bancorp (NasdaqGS:HNVR)	$16.49	$32.65	49.5%
Atlantic Union Bankshares (NYSE:AUB)	$30.90	$60.83	49.2%
Associated Banc-Corp (NYSE:ASB)	$20.00	$39.54	49.4%
USCB Financial Holdings (NasdaqGM:USCB)	$12.09	$23.87	49.4%
Hexcel (NYSE:HXL)	$62.25	$123.27	49.5%
Live Nation Entertainment (NYSE:LYV)	$88.75	$171.86	48.4%
BeiGene (NasdaqGS:BGNE)	$162.58	$319.67	49.1%
Carter Bankshares (NasdaqGS:CARE)	$12.13	$24.12	49.7%
Rapid7 (NasdaqGM:RPD)	$36.61	$70.53	48.1%
Astronics (NasdaqGS:ATRO)	$18.42	$36.16	49.1%

Click here to see the full list of 170 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen

Adobe

Overview: Adobe Inc., along with its subsidiaries, operates globally as a diversified software company with a market capitalization of approximately $235.34 billion.

Operations: The company's revenue is derived from various software segments globally.

Estimated Discount To Fair Value: 16.9%

Adobe Inc. appears undervalued based on cash flow analysis, trading at US$525.31, below the estimated fair value of US$632.35. Despite a robust earnings report for Q2 2024, showing a significant year-over-year increase in revenue and net income, the growth forecasts are moderate but stable. Adobe's expected annual profit growth is forecasted at 17.2%, outpacing the US market prediction of 14.8%. This financial stability, combined with a forecasted high return on equity of 54.7% in three years, underscores its potential as an undervalued stock based on future cash flows and profitability metrics.

• Our earnings growth report unveils the potential for significant increases in Adobe's future results.

• Take a closer look at Adobe's balance sheet health here in our report.

NasdaqGS:ADBE Discounted Cash Flow as at Jun 2024

Intuit

Overview: Intuit Inc. operates globally, offering financial management and compliance products and services to consumers, small businesses, self-employed individuals, and accounting professionals with a market capitalization of approximately $166.53 billion.

Operations: The company generates revenue through four primary segments: Pro-Tax ($0.60 billion), Consumer ($4.46 billion), Credit Karma ($1.65 billion), and Small Business and Self-Employed ($9.11 billion).

Estimated Discount To Fair Value: 28.3%

Intuit Inc. is considered undervalued based on discounted cash flow analysis, with its current trading price at US$595.7, below the estimated fair value of US$831.3. The company's recent initiatives, such as the launch of new AI-driven revenue intelligence technology in Mailchimp and strategic partnerships like with the NHL, underscore its commitment to leveraging advanced tech to enhance business offerings and market reach. Although Intuit's earnings are expected to grow by 16.1% annually, surpassing the US market average growth rate of 14.8%, this growth rate does not meet exceptionally high expectations but suggests steady upward momentum in financial performance.

• Our comprehensive growth report raises the possibility that Intuit is poised for substantial financial growth.

• Dive into the specifics of Intuit here with our thorough financial health report.

NasdaqGS:INTU Discounted Cash Flow as at Jun 2024

Oracle

Overview: Oracle Corporation provides a wide range of products and services tailored for enterprise information technology environments globally, with a market capitalization of approximately $379.65 billion.

Operations: The company generates revenue primarily through Cloud Services and License Support at $39.38 billion, followed by Services at $5.43 billion, Cloud License and On-Premise License at $5.08 billion, and Hardware at $3.07 billion.

Estimated Discount To Fair Value: 39.5%

Oracle, currently priced at US$138.13, is trading significantly below the calculated fair value of US$228.15, indicating strong undervaluation based on discounted cash flow analysis. Despite a high debt level which investors should consider cautiously, Oracle's financial outlook appears robust with an expected annual earnings growth of 15.7% and revenue growth projected at 9.4% per year, outpacing the US market forecast of 8.7%. Recent contract extensions with the U.S Department of Veterans Affairs and new partnerships like with Panasonic and Google Cloud highlight Oracle's ongoing strategic expansions and product enhancements that could bolster future performance.

• Insights from our recent growth report point to a promising forecast for Oracle's business outlook.

• Delve into the full analysis health report here for a deeper understanding of Oracle.

NYSE:ORCL Discounted Cash Flow as at Jun 2024

Turning Ideas Into Actions

• Get an in-depth perspective on all 170 Undervalued US Stocks Based On Cash Flows by using our screener 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:ADBE NasdaqGS:INTU and NYSE:ORCL.

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