As the U.S. stock market steadies after a significant selloff, investor attention is now focused on upcoming earnings reports and the Federal Reserve's policy meeting. In this climate of cautious optimism, identifying stocks that may be undervalued based on intrinsic value estimates could present opportunities for investors looking to navigate these uncertain times.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Click here to see the full list of 172 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Dayforce

Overview: Dayforce Inc. is a human capital management (HCM) software company operating in the United States, Canada, and internationally, with a market cap of $11.20 billion.

Operations: The company's revenue is primarily derived from its Human Capital Management (HCM) segment, which generated $1.69 billion.

Estimated Discount To Fair Value: 24.3%

Dayforce is trading at US$72.35, significantly below its estimated fair value of US$95.62, suggesting it might be undervalued based on cash flows. The company's earnings are forecast to grow rapidly at 37% annually, surpassing the broader U.S. market growth rate of 14.7%. Recent product innovations like Dayforce AI Agents and Strategic Workforce Planning enhance operational efficiency and employee productivity, potentially driving future revenue growth beyond the current forecast of 11.6% per year.

• Our expertly prepared growth report on Dayforce implies its future financial outlook may be stronger than recent results.
• Click to explore a detailed breakdown of our findings in Dayforce's balance sheet health report.

RXO

Overview: RXO, Inc. offers full truckload freight transportation brokering services and has a market cap of $4.16 billion.

Operations: The company's revenue is primarily derived from its transportation trucking segment, totaling $3.86 billion.

Estimated Discount To Fair Value: 48.6%

RXO is trading at US$26.81, well below its estimated fair value of US$52.21, indicating potential undervaluation based on cash flows. Despite a net loss of US$243 million in Q3 2024, revenue grew to US$1.04 billion from the previous year. Earnings are projected to grow significantly at over 100% annually as RXO seeks M&A opportunities and has a share repurchase authorization worth US$125 million, supporting strategic growth initiatives.

• The analysis detailed in our RXO growth report hints at robust future financial performance.
• Get an in-depth perspective on RXO's balance sheet by reading our health report here.

Western Alliance Bancorporation

Overview: Western Alliance Bancorporation is a bank holding company for Western Alliance Bank, offering a range of banking products and services mainly in Arizona, California, and Nevada, with a market cap of approximately $10.05 billion.

Operations: Western Alliance Bancorporation generates revenue through its segments, with $1.19 billion from Commercial, $1.62 billion from Consumer Related, and $106.60 million from Corporate & Other activities.

Estimated Discount To Fair Value: 49.2%

Western Alliance Bancorporation is trading at US$94, significantly below its estimated fair value of US$184.9, suggesting it may be undervalued based on cash flows. The company reported strong financial results for 2024 with net interest income reaching US$2.62 billion and net income at US$787.7 million, both up from the previous year. Earnings are expected to grow substantially over the next three years, outpacing the broader market's growth rate.

• According our earnings growth report, there's an indication that Western Alliance Bancorporation might be ready to expand.
• Click here and access our complete balance sheet health report to understand the dynamics of Western Alliance Bancorporation.

Taking Advantage

• Click through to start exploring the rest of the 169 Undervalued US Stocks Based On Cash Flows now.
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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:DAY NYSE:RXO and NYSE:WAL.

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