### 3 US Stocks Estimated To Be Trading At Discounts Between 34.9% And 47.8% ###
As the U.S. stock market grapples with a downturn in major indices and concerns over economic health, investors are increasingly on the lookout for undervalued opportunities. In this environment, identifying stocks trading at significant discounts can offer potential value plays amid broader market volatility.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Kaspi.kz (NasdaqGS:KSPI) | $126.66 | $249.53 | 49.2% |
Amdocs (NasdaqGS:DOX) | $87.01 | $173.82 | 49.9% |
Owens Corning (NYSE:OC) | $159.98 | $315.85 | 49.3% |
EQT (NYSE:EQT) | $32.66 | $65.31 | 50% |
Afya (NasdaqGS:AFYA) | $16.80 | $33.46 | 49.8% |
Associated Banc-Corp (NYSE:ASB) | $22.18 | $43.71 | 49.3% |
Sociedad Química y Minera de Chile (NYSE:SQM) | $36.45 | $72.88 | 50% |
Progress Software (NasdaqGS:PRGS) | $58.18 | $115.29 | 49.5% |
Zscaler (NasdaqGS:ZS) | $157.13 | $311.52 | 49.6% |
Enphase Energy (NasdaqGM:ENPH) | $112.91 | $225.41 | 49.9% |
Let's explore several standout options from the results in the screener.
Bilibili
Overview: Bilibili Inc. offers online entertainment services targeting young generations in China and has a market cap of $6.05 billion.
Operations: Bilibili generates CN¥23.95 billion from its Internet Information Providers segment.
Estimated Discount To Fair Value: 47.8%
Bilibili Inc. appears undervalued based on cash flows, trading at US$15.03, which is 47.8% below its estimated fair value of US$28.81. Recent earnings showed a significant reduction in net loss from CNY 1,546.71 million to CNY 608.7 million year-over-year for Q2 2024, highlighting improved financial health despite slower revenue growth (11.5% annually). The company is forecasted to become profitable within three years and grow earnings by 80.49% per year.
Li Auto
Overview: Li Auto Inc., with a market cap of $20.16 billion, operates in the energy vehicle market in the People’s Republic of China.
Operations: The company generates revenue of CN¥133.72 billion from its Auto Manufacturers segment.
Estimated Discount To Fair Value: 42.6%
Li Auto is trading at US$18.77, significantly below its estimated fair value of US$32.68, suggesting it may be undervalued based on cash flows. Despite a 453.2% earnings growth last year and forecasted annual revenue growth of 19.6%, the company has faced shareholder dilution and legal issues affecting investor sentiment. Recent sales data show strong performance with 48,122 vehicles delivered in August 2024, a year-over-year increase of 37.8%.
Clorox
Overview: The Clorox Company manufactures and markets consumer and professional products globally, with a market cap of approximately $19.96 billion.
Operations: The company's revenue segments include Household ($1.95 billion), Lifestyle ($1.28 billion), International ($1.16 billion), and Health and Wellness ($2.49 billion).
Estimated Discount To Fair Value: 34.9%
Clorox is trading at US$164.18, significantly below its estimated fair value of US$252.08, indicating it may be undervalued based on cash flows. Despite high debt levels, earnings grew by 87.9% over the past year and are forecasted to grow 21.6% annually, outpacing the US market's growth rate of 14.9%. However, Clorox faces challenges with dividend sustainability and slower revenue growth compared to the broader market.
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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:BILI NasdaqGS:LI and NYSE:CLX.
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