3 US Stocks That Analysts Estimate Are Trading Below Intrinsic Value

Simply Wall St.
02 Jan

As the U.S. stock market aims to rebound from a recent slump, with major indices like the Dow Jones poised for a positive start to 2025, investors are increasingly focused on identifying stocks that may be trading below their intrinsic value. In such an environment, finding undervalued stocks can offer potential opportunities for investors looking to capitalize on discrepancies between market price and fundamental worth.

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

Name Current Price Fair Value (Est) Discount (Est)
Camden National (NasdaqGS:CAC) $42.74 $84.44 49.4%
SideChannel (OTCPK:SDCH) $0.034 $0.066 48.5%
Ally Financial (NYSE:ALLY) $36.01 $71.77 49.8%
HealthEquity (NasdaqGS:HQY) $95.95 $189.22 49.3%
Kanzhun (NasdaqGS:BZ) $13.80 $27.00 48.9%
LifeMD (NasdaqGM:LFMD) $4.95 $9.79 49.4%
Mr. Cooper Group (NasdaqCM:COOP) $96.01 $189.50 49.3%
Progress Software (NasdaqGS:PRGS) $65.15 $129.87 49.8%
South Atlantic Bancshares (OTCPK:SABK) $15.94 $30.95 48.5%
Repligen (NasdaqGS:RGEN) $143.94 $281.09 48.8%

Click here to see the full list of 173 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Flushing Financial

Overview: Flushing Financial Corporation is the bank holding company for Flushing Bank, offering banking products and services to consumers, businesses, and governmental units, with a market cap of $415.10 million.

Operations: The company's revenue is primarily derived from its Community Bank segment, which generated $193.71 million.

Estimated Discount To Fair Value: 47%

Flushing Financial is trading at US$14.28, significantly below its estimated fair value of US$26.94, suggesting it might be undervalued based on cash flows. Despite recent insider selling and a dividend that may not be fully covered by earnings, the company's revenue and earnings are forecast to grow faster than the US market. Recent equity offerings raised US$70 million, potentially impacting share value but supporting growth initiatives.

  • Upon reviewing our latest growth report, Flushing Financial's projected financial performance appears quite optimistic.
  • Click here and access our complete balance sheet health report to understand the dynamics of Flushing Financial.
NasdaqGS:FFIC Discounted Cash Flow as at Jan 2025

Northfield Bancorp (Staten Island NY)

Overview: Northfield Bancorp, Inc. (Staten Island, NY) is the bank holding company for Northfield Bank, offering a range of banking products and services to individuals and corporate customers, with a market cap of $498.55 million.

Operations: The company's revenue primarily comes from its Community Banking segment, generating $124.55 million.

Estimated Discount To Fair Value: 37.4%

Northfield Bancorp is trading at $11.62, well below its estimated fair value of $18.58, indicating potential undervaluation based on cash flows. Despite recent net charge-offs and decreased earnings, the company maintains a reliable 4.48% dividend yield and has completed significant share buybacks worth $10 million. Analysts expect Northfield's earnings to grow significantly at 31.9% annually over the next three years, outpacing the US market growth rate of 14.9%.

  • According our earnings growth report, there's an indication that Northfield Bancorp (Staten Island NY) might be ready to expand.
  • Delve into the full analysis health report here for a deeper understanding of Northfield Bancorp (Staten Island NY).
NasdaqGS:NFBK Discounted Cash Flow as at Jan 2025

Despegar.com

Overview: Despegar.com, Corp. is an online travel company offering a variety of travel and related products to both leisure and corporate travelers via its websites and mobile apps across Latin America and the United States, with a market cap of $1.49 billion.

Operations: The company's revenue segments include $263.15 million from Air, $50.81 million from Financial Services, and $477.31 million from Packages, Hotels & Other Travel Products.

Estimated Discount To Fair Value: 10.2%

Despegar.com is trading at US$19.25, slightly below its estimated fair value of US$21.45, suggesting potential undervaluation based on cash flows. The company has reported earnings growth and expects profitability in three years with revenue growth surpassing the US market rate. However, shareholder dilution occurred recently, and share price volatility remains high. Despegar's acquisition by Prosus for US$1.6 billion could enhance its strategic positioning within Latin America's e-commerce ecosystem upon completion in Q2 2025.

  • Our expertly prepared growth report on Despegar.com implies its future financial outlook may be stronger than recent results.
  • Click here to discover the nuances of Despegar.com with our detailed financial health report.
NYSE:DESP Discounted Cash Flow as at Jan 2025

Seize The Opportunity

  • Explore the 173 names from our Undervalued US Stocks Based On Cash Flows screener here.
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Ready For A Different Approach?

  • 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 NasdaqGS:FFIC NasdaqGS:NFBK and NYSE:DESP.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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