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The United States stock market has experienced a significant surge, with major indices like the Dow Jones Industrial Average and the Nasdaq Composite climbing sharply following an easing of trade tensions between the U.S. and China. As investors navigate these buoyant market conditions, identifying undervalued stocks becomes crucial for those looking to capitalize on potential growth opportunities that may arise from current economic developments.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Burke & Herbert Financial Services (NasdaqCM:BHRB) | $56.71 | $111.26 | 49% |
KBR (NYSE:KBR) | $55.20 | $108.72 | 49.2% |
First Reliance Bancshares (OTCPK:FSRL) | $9.30 | $18.49 | 49.7% |
HealthEquity (NasdaqGS:HQY) | $90.40 | $179.14 | 49.5% |
Arrow Financial (NasdaqGS:AROW) | $26.13 | $51.19 | 49% |
Verra Mobility (NasdaqCM:VRRM) | $24.19 | $48.21 | 49.8% |
Vertex Pharmaceuticals (NasdaqGS:VRTX) | $424.99 | $822.82 | 48.3% |
Mobileye Global (NasdaqGS:MBLY) | $16.30 | $31.64 | 48.5% |
Nutanix (NasdaqGS:NTNX) | $75.10 | $145.13 | 48.3% |
Pursuit Attractions and Hospitality (NYSE:PRSU) | $28.92 | $57.16 | 49.4% |
Let's review some notable picks from our screened stocks.
Mobileye Global
Overview: Mobileye Global Inc. develops and deploys advanced driver assistance systems and autonomous driving technologies worldwide, with a market cap of approximately $13.24 billion.
Operations: The company's revenue primarily comes from its advanced driver assistance systems and autonomous driving technologies, totaling $1.81 billion.
Estimated Discount To Fair Value: 48.5%
Mobileye Global is trading at US$16.30, significantly below its estimated fair value of US$31.64, suggesting it might be undervalued based on cash flows. The company's revenue growth forecast of 16.8% annually outpaces the broader U.S. market's 8.4%. Despite recent executive resignations, strategic alliances like the one with Volkswagen for advanced driver assistance systems could bolster future prospects as Mobileye aims to become profitable within three years.
ON Semiconductor
Overview: ON Semiconductor Corporation offers intelligent sensing and power solutions globally, with a market cap of approximately $17.12 billion.
Operations: The company's revenue is derived from three main segments: Power Solutions Group ($3.12 billion), Intelligent Sensing Group ($1.07 billion), and Analog & Mixed-Signal Group ($2.48 billion).