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As the U.S. stock market continues its rally, buoyed by tech sector gains and eased trade tensions between the U.S. and China, investors are keenly observing opportunities amid a landscape of recovering indices. In this environment, identifying undervalued stocks can be crucial for those looking to capitalize on potential growth prospects that may not yet be fully reflected in current prices.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Provident Financial Services (NYSE:PFS) | $17.98 | $35.55 | 49.4% |
| Berkshire Hills Bancorp (NYSE:BHLB) | $26.78 | $52.65 | 49.1% |
| Valley National Bancorp (NasdaqGS:VLY) | $9.20 | $18.28 | 49.7% |
| Horizon Bancorp (NasdaqGS:HBNC) | $15.80 | $30.73 | 48.6% |
| First Reliance Bancshares (OTCPK:FSRL) | $9.30 | $18.49 | 49.7% |
| Bel Fuse (NasdaqGS:BELF.A) | $72.65 | $142.88 | 49.2% |
| Shoals Technologies Group (NasdaqGM:SHLS) | $6.03 | $11.81 | 48.9% |
| FinWise Bancorp (NasdaqGM:FINW) | $15.05 | $29.22 | 48.5% |
| Clearfield (NasdaqGM:CLFD) | $37.73 | $74.78 | 49.5% |
| MAC Copper (NYSE:MTAL) | $10.06 | $20.00 | 49.7% |
Let's review some notable picks from our screened stocks.
Mr. Cooper Group
Overview: Mr. Cooper Group Inc., with a market cap of $7.63 billion, operates as a non-bank servicer of residential mortgage loans in the United States through its subsidiaries.
Operations: The company's revenue is primarily derived from its Servicing segment, which accounts for $1.62 billion, and its Originations segment, contributing $532 million.
Estimated Discount To Fair Value: 31.8%
Mr. Cooper Group is trading at US$128.35, significantly below its estimated fair value of US$188.11, making it undervalued based on cash flows. Despite a forecasted annual earnings growth rate of 24.92%, the company's recent financials show a decline in net income and earnings per share compared to the previous year. Additionally, significant insider selling has occurred recently, and debt coverage by operating cash flow remains inadequate amidst an acquisition agreement with Rocket Companies valued at $9.4 billion.
Bloom Energy
Overview: Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation both in the United States and internationally, with a market cap of approximately $4.39 billion.
Operations: The company's revenue primarily comes from its electric equipment segment, which generated $1.56 billion.