Exploring Three US Stocks With Estimated Intrinsic Discounts Ranging From 19.1% To 44.1%
Amid a week of modest gains with the Dow Jones Industrial Average closing above 40,000 and optimism about potential Federal Reserve rate cuts, investors are keenly watching market movements. In this context, identifying stocks that appear undervalued relative to their intrinsic value could be particularly compelling.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Victory Capital Holdings (NasdaqGS:VCTR) | $50.99 | $100.55 | 49.3% |
Marriott Vacations Worldwide (NYSE:VAC) | $87.03 | $169.56 | 48.7% |
Hanover Bancorp (NasdaqGS:HNVR) | $16.51 | $32.04 | 48.5% |
Sachem Capital (NYSEAM:SACH) | $2.81 | $5.43 | 48.2% |
Atlanticus Holdings (NasdaqGS:ATLC) | $33.50 | $64.30 | 47.9% |
Kiniksa Pharmaceuticals International (NasdaqGS:KNSA) | $21.21 | $41.57 | 49% |
AppLovin (NasdaqGS:APP) | $84.86 | $165.13 | 48.6% |
Duckhorn Portfolio (NYSE:NAPA) | $7.19 | $14.30 | 49.7% |
WEX (NYSE:WEX) | $183.13 | $356.29 | 48.6% |
Vasta Platform (NasdaqGS:VSTA) | $3.025 | $6.01 | 49.7% |
Underneath we present a selection of stocks filtered out by our screen.
Kanzhun
Overview: Kanzhun Limited operates an online recruitment platform in the People's Republic of China, with a market capitalization of approximately $8.51 billion.
Operations: The company generates its revenue primarily through online recruitment services, totaling CN¥6.38 billion.
Estimated Discount To Fair Value: 41.6%
Kanzhun Limited, despite recent board changes and a significant earnings increase in Q1 2024, remains undervalued based on discounted cash flow analysis. Currently trading at US$19.09, well below the estimated fair value of US$32.69, it shows potential for appreciation. Analysts expect a substantial 23.44% annual earnings growth over the next three years, outpacing the broader U.S market forecast of 14.8%. However, its projected low return on equity of 18.5% in three years tempers this outlook slightly.
According our earnings growth report, there's an indication that Kanzhun might be ready to expand.
Unlock comprehensive insights into our analysis of Kanzhun stock in this financial health report.
SPX Technologies
Overview: SPX Technologies, Inc. is a global provider of infrastructure equipment for the heating, ventilation, and cooling (HVAC) and detection and measurement markets, with a market capitalization of approximately $7.10 billion.
Operations: The company generates its revenue from two primary segments: HVAC, which brings in $1.17 billion, and detection and measurement, contributing $633.5 million.
Estimated Discount To Fair Value: 19.1%
SPX Technologies, currently priced at US$153.46, is valued below its calculated fair value of US$189.78, suggesting potential for price appreciation. Despite recent exclusions from multiple Russell indexes, the firm's strong projected earnings growth of 27.4% annually over the next three years and revenue growth forecasts surpassing the U.S market indicate robust financial health. However, a forecasted low return on equity of 16.4% could be a concern for future profitability efficiency.
Our growth report here indicates SPX Technologies may be poised for an improving outlook.
Take a closer look at SPX Technologies' balance sheet health here in our report.
SouthState
Overview: SouthState Corporation serves as the bank holding company for SouthState Bank, National Association, offering a variety of banking services and products to individuals and companies, with a market capitalization of approximately $6.35 billion.
Operations: The company generates revenue primarily through banking operations, totaling approximately $1.61 billion.
Estimated Discount To Fair Value: 44.1%
SouthState, with a current price of US$83.38, is significantly undervalued based on cash flows, trading 44.1% below its estimated fair value of US$149.27. Despite a recent decline in net interest income and net income in Q1 2024, the company's aggressive growth strategy is evident from its planned acquisition and robust forecasted earnings growth of 25.73% annually over the next three years. However, a relatively low projected return on equity at 9.2% could temper expectations for financial efficiency moving forward.
Seize The Opportunity
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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:BZ NYSE:SPXC and NYSE:SSB.
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