As of late September 2024, the S&P 500 and Dow Jones Industrial Average have retreated from their recent record highs, reflecting a stalled stock market rally amid anticipation of key economic data releases. Despite this pause, investor optimism persists regarding a potential soft landing for the economy and continued interest rate cuts by the Federal Reserve. In such an environment, identifying undervalued stocks becomes crucial for investors seeking opportunities that may offer significant upside potential once market conditions stabilize.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Click here to see the full list of 187 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

CyberArk Software

Overview: CyberArk Software Ltd. develops, markets, and sells software-based identity security solutions and services globally, with a market cap of $12.28 billion.

Operations: Revenue from security software and services for CyberArk Software Ltd. amounted to $860.60 million.

Estimated Discount To Fair Value: 39.7%

CyberArk Software is trading at US$283.73, significantly below its estimated fair value of US$470.46, suggesting it may be undervalued based on cash flows. The company’s revenue is forecast to grow 16.5% annually, outpacing the broader US market's growth rate of 8.7%. Recent client wins with RBL Finserve and SAP ECS highlight CyberArk's expanding market presence and robust demand for its identity security solutions, further supporting its growth potential despite past shareholder dilution.

• Our growth report here indicates CyberArk Software may be poised for an improving outlook.

• Dive into the specifics of CyberArk Software here with our thorough financial health report.

Corning

Overview: Corning Incorporated operates in display technologies, optical communications, environmental technologies, specialty materials, and life sciences sectors both in the United States and internationally, with a market cap of approximately $38.75 billion.

Operations: Corning's revenue segments include Display Technologies ($3.73 billion), Optical Communications ($3.86 billion), Environmental Technologies ($1.76 billion), Specialty Materials ($1.99 billion), and Life Sciences ($957 million).

Estimated Discount To Fair Value: 16.4%

Corning, trading at US$44.67, is undervalued with an estimated fair value of US$53.41. Earnings are forecast to grow 28.21% annually, outpacing the broader US market's 15.3%. However, significant insider selling and high debt levels are concerns. Recent agreements like extending distribution rights for Axion BioSystems' Cell Counter and a substantial share buyback program highlight strategic moves to strengthen its market position and shareholder value despite mixed financial results in recent quarters.

• The analysis detailed in our Corning growth report hints at robust future financial performance.

• Click to explore a detailed breakdown of our findings in Corning's balance sheet health report.

XPeng

Overview: XPeng Inc. designs, develops, manufactures, and markets smart electric vehicles (EVs) in the People’s Republic of China with a market cap of $10.15 billion.

Operations: The company's revenue from its Auto Manufacturers segment is CN¥36.24 billion.

Estimated Discount To Fair Value: 12%

XPeng, trading at US$10.43, is undervalued with an estimated fair value of US$11.85. Despite recent shareholder dilution and high share price volatility, XPeng's revenue is forecast to grow 25.5% annually and earnings are expected to rise 62.8% per year, surpassing market averages. Recent product launches like the MONA M03 and advancements in AI technology underscore its commitment to innovation but also highlight ongoing financial challenges including a net loss reduction from CNY 2.80 billion to CNY 1.28 billion year-over-year for Q2 2024.

• Upon reviewing our latest growth report, XPeng's projected financial performance appears quite optimistic.

• Click here and access our complete balance sheet health report to understand the dynamics of XPeng.

Make It Happen

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Want To Explore Some Alternatives?

• 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 NasdaqGS:CYBR NYSE:GLW and NYSE:XPEV.

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