3 Stocks That Investors Might Be Undervaluing By Up To 43.3%

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In the current global market landscape, investors are navigating a complex environment marked by fluctuating interest rates, geopolitical tensions, and volatile corporate earnings. With U.S. stocks experiencing a mixed performance and European markets buoyed by strong earnings and monetary easing, identifying undervalued opportunities becomes crucial for investors seeking potential value amidst uncertainty. In such conditions, a good stock is often characterized by solid fundamentals that may be temporarily overlooked due to broader market volatility or sector-specific disruptions.

Top 10 Undervalued Stocks Based On Cash Flows

Name

Current Price

Fair Value (Est)

Discount (Est)

Old National Bancorp (NasdaqGS:ONB)

US$24.45

US$48.78

49.9%

Decisive Dividend (TSXV:DE)

CA$5.96

CA$11.91

50%

Tongqinglou Catering (SHSE:605108)

CN¥20.86

CN¥41.63

49.9%

Telefonaktiebolaget LM Ericsson (OM:ERIC B)

SEK83.14

SEK165.53

49.8%

Solum (KOSE:A248070)

₩18800.00

₩37257.19

49.5%

AbbVie (NYSE:ABBV)

US$192.97

US$385.39

49.9%

Semiconductor Manufacturing International (SEHK:981)

HK$47.90

HK$95.26

49.7%

Verra Mobility (NasdaqCM:VRRM)

US$25.88

US$51.66

49.9%

Facephi Biometria (BME:FACE)

€2.24

€4.46

49.7%

Sandfire Resources (ASX:SFR)

A$10.33

A$20.47

49.5%

Click here to see the full list of 921 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Xi'an NovaStar Tech

Overview: Xi'an NovaStar Tech Co., Ltd. offers LED display control solutions in China and has a market cap of CN¥15.80 billion.

Operations: The company generates revenue from its Electronic Components & Parts segment, totaling CN¥3.28 billion.

Estimated Discount To Fair Value: 43.3%

Xi'an NovaStar Tech is trading significantly below its estimated fair value of CNY 301.48, with a current price of CNY 170.95, suggesting it may be undervalued based on cash flows. The company's earnings and revenue are expected to grow substantially faster than the Chinese market average, at rates of 35.3% and 30.2% per year respectively. However, its dividend yield of 3.15% is not well covered by free cash flows, indicating potential sustainability concerns despite high forecasted returns on equity and robust profit growth projections.

SZSE:301589 Discounted Cash Flow as at Feb 2025
SZSE:301589 Discounted Cash Flow as at Feb 2025

Elbit Systems

Overview: Elbit Systems Ltd. is a company that develops and supplies a range of systems and products for defense, homeland security, and commercial aviation applications across various regions including Israel, North America, the Asia-Pacific, Europe, Latin America, and internationally with a market cap of ₪48.58 billion.