Global markets have experienced a rebound, with U.S. stocks posting solid gains after a steep sell-off and European indices rising on the back of an ECB rate cut. Meanwhile, core inflation in the U.S. ticked slightly higher than expected, and Treasury yields reached year-to-date lows. In this environment of fluctuating market conditions, identifying stocks that may be trading below their fair value can present significant opportunities for investors. Here are three such stocks that could be undervalued by up to 46.1%.

Top 10 Undervalued Stocks Based On Cash Flows

Click here to see the full list of 924 stocks from our Undervalued Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Live Nation Entertainment

Overview: Live Nation Entertainment, Inc. operates as a live entertainment company worldwide and has a market cap of approximately $23.38 billion.

Operations: Live Nation Entertainment generates revenue primarily from Concerts ($19.72 billion), Ticketing ($3.03 billion), and Sponsorship & Advertising ($1.15 billion).

Estimated Discount To Fair Value: 45.2%

Live Nation Entertainment is trading at US$102.92, significantly below its estimated fair value of US$187.84, suggesting it may be undervalued based on cash flows. Despite being dropped from several Russell value indices, the company reported strong Q2 2024 earnings with sales of US$6.02 billion and net income of US$297.97 million. Earnings are forecast to grow significantly at 29.3% per year, outpacing the broader U.S market's growth rate and projecting a very high return on equity of 65.4% in three years.

• The analysis detailed in our Live Nation Entertainment growth report hints at robust future financial performance.

• Get an in-depth perspective on Live Nation Entertainment's balance sheet by reading our health report here.

Owens Corning

Overview: Owens Corning manufactures and sells building and construction materials globally, with a market cap of $14.59 billion.

Operations: The company's revenue segments include $4.07 billion from Roofing, $2.15 billion from Composites, and $3.66 billion from Insulation.

Estimated Discount To Fair Value: 46.1%

Owens Corning is trading at US$170.79, significantly below its estimated fair value of US$316.96, indicating it may be undervalued based on cash flows. Q2 2024 earnings showed sales of US$2.79 billion and net income of US$285 million, both lower than the previous year. Despite high debt levels, earnings are forecast to grow 16.67% annually, outpacing the U.S market's growth rate and projecting a return on equity of 21.8% in three years.

• The growth report we've compiled suggests that Owens Corning's future prospects could be on the up.

• Navigate through the intricacies of Owens Corning with our comprehensive financial health report here.

Pure Storage

Overview: Pure Storage, Inc. provides data storage and management technologies, products, and services both in the United States and internationally, with a market cap of approximately $16.25 billion.

Operations: Pure Storage's revenue segment includes $3.01 billion from computer storage devices.

Estimated Discount To Fair Value: 44.3%

Pure Storage is trading at US$49.8, considerably below its estimated fair value of US$89.42, highlighting potential undervaluation based on cash flows. Recent earnings show a turnaround with Q2 revenue at US$763.77 million and net income of US$35.67 million, compared to a loss last year. Despite no recent share buybacks, the company’s earnings are forecast to grow 37.28% annually over the next three years, outpacing both its revenue growth and market expectations significantly.

• In light of our recent growth report, it seems possible that Pure Storage's financial performance will exceed current levels.

• Delve into the full analysis health report here for a deeper understanding of Pure Storage.

Where To Now?

• Navigate through the entire inventory of 924 Undervalued Stocks Based On Cash Flows here.

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Ready To Venture Into Other Investment Styles?

• 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:LYV NYSE:OC and NYSE:PSTG.

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