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The United States market remained flat over the last week, though it has experienced a 5.7% rise over the past 12 months, with earnings forecasted to grow by 13% annually. In this environment of steady growth, identifying undervalued stocks can offer investors opportunities to capitalize on potential gains as these stocks may be poised to benefit from improving earnings prospects.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| NBT Bancorp (NasdaqGS:NBTB) | $39.76 | $78.07 | 49.1% |
| First National (NasdaqCM:FXNC) | $18.60 | $36.91 | 49.6% |
| First Bancorp (NasdaqGS:FBNC) | $37.12 | $72.67 | 48.9% |
| Ready Capital (NYSE:RC) | $4.39 | $8.65 | 49.2% |
| Datadog (NasdaqGS:DDOG) | $91.18 | $178.41 | 48.9% |
| Curbline Properties (NYSE:CURB) | $23.18 | $46.14 | 49.8% |
| Viking Holdings (NYSE:VIK) | $39.80 | $77.55 | 48.7% |
| Sotera Health (NasdaqGS:SHC) | $10.48 | $20.96 | 50% |
| MYT Netherlands Parent B.V (NYSE:MYTE) | $7.70 | $15.30 | 49.7% |
| CNX Resources (NYSE:CNX) | $30.82 | $60.72 | 49.2% |
Here's a peek at a few of the choices from the screener.
Futu Holdings
Overview: Futu Holdings Limited operates as a digitalized securities brokerage and wealth management product distributor in Hong Kong and internationally, with a market cap of approximately $11.21 billion.
Operations: Futu Holdings generates revenue primarily from its online brokerage services and margin financing services, amounting to HK$11.97 billion.
Estimated Discount To Fair Value: 44.2%
Futu Holdings is trading at US$79.65, significantly below its estimated fair value of US$142.65, presenting a potential undervaluation based on discounted cash flow analysis. The company reported strong financial performance with substantial revenue and net income growth for 2024. Despite recent share price volatility, Futu's earnings are forecast to grow faster than the US market at 19.3% annually, supported by robust revenue projections outpacing market averages.
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The growth report we've compiled suggests that Futu Holdings' future prospects could be on the up.
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Take a closer look at Futu Holdings' balance sheet health here in our report.
Duolingo
Overview: Duolingo, Inc. is a mobile learning platform that operates in the United States, the United Kingdom, and internationally with a market cap of approximately $14.77 billion.
Operations: The company's revenue primarily comes from its educational software segment, generating $748.02 million.
Estimated Discount To Fair Value: 28.7%
Duolingo is trading at US$326.5, significantly below its estimated fair value of US$458.09, suggesting potential undervaluation based on discounted cash flow analysis. The company has demonstrated robust financial growth, with 2024 sales reaching US$748.02 million and net income rising to US$88.57 million. Despite insider selling, Duolingo's earnings are projected to grow significantly faster than the market average over the next three years, supported by strong revenue forecasts and recent strategic expansions like Duo's Treehouse initiative.