October 2024 US Stocks That May Be Trading Below Estimated Value
In This Article:
As the U.S. stock market faces turbulence with major indexes tumbling due to rising oil prices and Treasury yields, investors are keenly observing potential opportunities amidst the volatility. In such an environment, identifying stocks that may be trading below their estimated value can provide a strategic edge, as they offer the prospect of growth when market conditions stabilize.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| MidWestOne Financial Group (NasdaqGS:MOFG) | $27.03 | $53.83 | 49.8% |
| Molina Healthcare (NYSE:MOH) | $325.26 | $641.75 | 49.3% |
| Associated Banc-Corp (NYSE:ASB) | $21.21 | $41.76 | 49.2% |
| Cadence Bank (NYSE:CADE) | $31.07 | $61.50 | 49.5% |
| Heartland Financial USA (NasdaqGS:HTLF) | $56.17 | $110.14 | 49% |
| California Resources (NYSE:CRC) | $54.18 | $104.21 | 48% |
| Tenable Holdings (NasdaqGS:TENB) | $40.44 | $78.80 | 48.7% |
| EVERTEC (NYSE:EVTC) | $33.55 | $66.42 | 49.5% |
| Dingdong (Cayman) (NYSE:DDL) | $3.64 | $7.18 | 49.3% |
| Alnylam Pharmaceuticals (NasdaqGS:ALNY) | $266.77 | $518.82 | 48.6% |
Underneath we present a selection of stocks filtered out by our screen.
DexCom
Overview: DexCom, Inc. is a medical device company specializing in the design, development, and commercialization of continuous glucose monitoring systems globally, with a market capitalization of approximately $27.29 billion.
Operations: The company's revenue is primarily derived from its continuous glucose monitoring systems, with the Patient Monitoring Equipment segment generating $3.93 billion.
Estimated Discount To Fair Value: 44.6%
DexCom is trading at US$68.62, significantly below its estimated fair value of US$123.93, suggesting it could be undervalued based on discounted cash flow analysis. The company's earnings are projected to grow 16.54% annually, outpacing the broader U.S. market's expected growth rate of 15.3%. However, recent shareholder dilution and high share price volatility may pose risks despite robust revenue forecasts and strategic product expansions in diabetes management technology enhancing its market position.
Coherent
Overview: Coherent Corp. is involved in developing, manufacturing, and marketing engineered materials, optoelectronic components and devices, as well as optical and laser systems for industrial, communications, electronics, and instrumentation markets globally with a market cap of $14.72 billion.