3 US Stocks That Might Be Undervalued According To Estimates
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As the U.S. stock market experiences a mixed performance with the Dow Jones Industrial Average reaching record highs while the S&P 500 and Nasdaq Composite face slight declines, investors are closely monitoring inflation data and Federal Reserve rate cuts. In this environment, identifying undervalued stocks becomes crucial for those looking to capitalize on potential market inefficiencies. Given these conditions, it is important to consider stocks that may be trading below their intrinsic value due to temporary market factors or broader economic trends. Here are three U.S. stocks that might be undervalued according to estimates.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Western Alliance Bancorporation (NYSE:WAL) | $85.58 | $167.74 | 49% |
| M-tron Industries (NYSEAM:MPTI) | $41.02 | $79.57 | 48.4% |
| KBR (NYSE:KBR) | $64.18 | $126.97 | 49.5% |
| TAL Education Group (NYSE:TAL) | $10.80 | $21.08 | 48.8% |
| Tenable Holdings (NasdaqGS:TENB) | $39.92 | $78.94 | 49.4% |
| Enphase Energy (NasdaqGM:ENPH) | $115.00 | $224.88 | 48.9% |
| EVERTEC (NYSE:EVTC) | $33.90 | $66.21 | 48.8% |
| Cytek Biosciences (NasdaqGS:CTKB) | $5.39 | $10.61 | 49.2% |
| Vasta Platform (NasdaqGS:VSTA) | $2.60 | $5.10 | 49.1% |
| SunOpta (NasdaqGS:STKL) | $6.52 | $12.65 | 48.4% |
Here's a peek at a few of the choices from the screener.
DoorDash
Overview: DoorDash, Inc. operates a commerce platform connecting merchants, consumers, and independent contractors both in the United States and internationally, with a market cap of approximately $58.53 billion.
Operations: Revenue segments include Internet Information Providers, generating $9.61 billion.
Estimated Discount To Fair Value: 36.9%
DoorDash, trading at US$142.23, is significantly undervalued based on its estimated fair value of US$225.55. Despite recent insider selling and a net loss reduction from US$331 million to US$180 million for the first half of 2024, DoorDash's revenue growth outpaces the market and is forecasted to grow annually by 13.3%. The company’s strategic partnerships with brands like Mattress Firm and Save A Lot enhance its logistics network and customer base, supporting future profitability within three years.
GlobalFoundries
Overview: GlobalFoundries Inc., a semiconductor foundry with a market cap of $22.60 billion, provides a range of mainstream wafer fabrication services and technologies worldwide.