3 US Stocks Estimated To Be 12.8%-44.8% Below Intrinsic Value
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After a volatile August, U.S. stocks ended the month with gains as major indexes rebounded from early declines, buoyed by easing economic fears and expectations of Federal Reserve rate cuts. This environment presents an opportunity to explore undervalued stocks, which can offer significant upside potential when markets stabilize. Identifying undervalued stocks involves assessing their intrinsic value relative to current market prices. In this article, we'll examine three U.S. stocks that are estimated to be between 12.8% and 44.8% below their intrinsic value, making them compelling considerations in today's market landscape.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Amdocs (NasdaqGS:DOX) | $86.97 | $173.25 | 49.8% |
| Heartland Financial USA (NasdaqGS:HTLF) | $55.76 | $109.57 | 49.1% |
| California Resources (NYSE:CRC) | $52.47 | $104.70 | 49.9% |
| Tompkins Financial (NYSEAM:TMP) | $61.34 | $122.40 | 49.9% |
| Progress Software (NasdaqGS:PRGS) | $58.15 | $115.14 | 49.5% |
| Fluence Energy (NasdaqGS:FLNC) | $18.37 | $35.93 | 48.9% |
| STAAR Surgical (NasdaqGM:STAA) | $33.09 | $65.37 | 49.4% |
| WEX (NYSE:WEX) | $191.02 | $377.68 | 49.4% |
| Bilibili (NasdaqGS:BILI) | $14.38 | $28.71 | 49.9% |
| Alnylam Pharmaceuticals (NasdaqGS:ALNY) | $262.69 | $512.94 | 48.8% |
Here's a peek at a few of the choices from the screener.
GlobalFoundries
Overview: GlobalFoundries Inc., with a market cap of $25.76 billion, is a semiconductor foundry that offers a variety of mainstream wafer fabrication services and technologies globally.
Operations: The company generates $6.89 billion from its semiconductor segment.
Estimated Discount To Fair Value: 30.2%
GlobalFoundries (GF) appears undervalued based on cash flows, trading at US$46.68, below its estimated fair value of US$66.91. Despite a forecasted annual earnings growth of 23%, profit margins have declined from 19.1% to 11.8% over the past year. Recent strategic partnerships, including agreements with Finwave Semiconductor and Efficient for advanced semiconductor technologies, could enhance GF’s manufacturing capabilities and market position, potentially improving future cash flows and profitability metrics.
Zscaler
Overview: Zscaler, Inc. operates as a cloud security company worldwide with a market cap of $30.23 billion.
Operations: Revenue from subscription services to Zscaler's cloud platform and related support services totals $2.03 billion.