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Over the last 7 days, the United States market has risen by 5.1%, contributing to an overall increase of 11% over the past year, with earnings expected to grow by 14% annually in the coming years. In this environment of positive momentum and growth prospects, identifying stocks that are potentially undervalued can be a strategic approach for investors looking to capitalize on market opportunities.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Berkshire Hills Bancorp (NYSE:BHLB) | $26.56 | $51.80 | 48.7% |
Valley National Bancorp (NasdaqGS:VLY) | $9.17 | $18.22 | 49.7% |
KBR (NYSE:KBR) | $55.66 | $108.48 | 48.7% |
Horizon Bancorp (NasdaqGS:HBNC) | $15.77 | $30.71 | 48.7% |
Insteel Industries (NYSE:IIIN) | $37.01 | $72.18 | 48.7% |
Bel Fuse (NasdaqGS:BELF.A) | $71.85 | $143.21 | 49.8% |
Shoals Technologies Group (NasdaqGM:SHLS) | $6.11 | $11.89 | 48.6% |
FinWise Bancorp (NasdaqGM:FINW) | $14.84 | $29.22 | 49.2% |
Vertex Pharmaceuticals (NasdaqGS:VRTX) | $421.16 | $823.12 | 48.8% |
Clearfield (NasdaqGM:CLFD) | $37.47 | $74.54 | 49.7% |
Below we spotlight a couple of our favorites from our exclusive screener.
Advanced Micro Devices
Overview: Advanced Micro Devices, Inc. is a global semiconductor company with a market capitalization of approximately $182.34 billion.
Operations: AMD's revenue is primarily derived from its Data Center segment at $13.92 billion, followed by the Client segment at $7.98 billion, Embedded at $3.53 billion, and Gaming at $2.32 billion.
Estimated Discount To Fair Value: 13.6%
Advanced Micro Devices (AMD) is trading at a discount to its estimated fair value of US$136.27, with a current price of US$117.72, suggesting it may be undervalued based on cash flows. Recent strategic initiatives, including an expanded $14 billion buyback plan and partnerships in AI infrastructure with HUMAIN, bolster its growth prospects. AMD's earnings are forecast to grow significantly faster than the broader U.S. market, highlighting potential for strong future performance despite slower revenue growth projections.
Carvana
Overview: Carvana Co. operates an e-commerce platform for buying and selling used cars in the United States, with a market cap of approximately $63.22 billion.
Operations: The company's revenue is primarily derived from its retail segment, specifically gasoline and auto dealers, amounting to $14.84 billion.