Yahoo Finance 3 US Stocks That Might Be Undervalued In September 2024
The U.S. stock market has seen a mixed performance recently, with the S&P 500 and Nasdaq Composite extending their rally while the Dow Jones Industrial Average fell due to a decline in bank stocks. As investors navigate these fluctuating conditions, identifying undervalued stocks can offer potential opportunities for growth amid economic uncertainties and shifting interest rates.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Kaspi.kz (NasdaqGS:KSPI) | $122.92 | $243.36 | 49.5% |
Owens Corning (NYSE:OC) | $157.76 | $315.19 | 49.9% |
Amdocs (NasdaqGS:DOX) | $85.84 | $167.66 | 48.8% |
Cadence Bank (NYSE:CADE) | $30.21 | $59.19 | 49% |
Progress Software (NasdaqGS:PRGS) | $57.62 | $114.33 | 49.6% |
Onto Innovation (NYSE:ONTO) | $182.53 | $357.72 | 49% |
EVERTEC (NYSE:EVTC) | $32.94 | $65.79 | 49.9% |
WEX (NYSE:WEX) | $193.14 | $379.79 | 49.1% |
Vasta Platform (NasdaqGS:VSTA) | $2.50 | $4.89 | 48.9% |
Sea (NYSE:SE) | $77.48 | $151.06 | 48.7% |
Let's take a closer look at a couple of our picks from the screened companies.
Zillow Group
Overview: Zillow Group, Inc. operates real estate brands through mobile applications and websites in the United States, with a market cap of approximately $12.42 billion.
Operations: The company generates revenue primarily through its Internet, Media & Technology segment ($1.47 billion) and its Mortgages segment ($0.15 billion).
Estimated Discount To Fair Value: 47.9%
Zillow Group appears undervalued based on cash flows, trading at US$54.34, significantly below its estimated fair value of US$104.33. Recent leadership changes and strategic initiatives aim to enhance operational efficiency and revenue growth, which is forecasted at 11.1% per year—faster than the broader market. Despite reporting a net loss of US$17 million for Q2 2024, this was an improvement from the previous year’s loss of US$35 million, indicating potential for profitability within three years.
Corning
Overview: Corning Incorporated operates in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences sectors both in the United States and internationally, with a market cap of $35.06 billion.
Operations: The company's revenue segments include Optical Communications ($3.86 billion), Display Technologies ($3.73 billion), Specialty Materials ($1.99 billion), Environmental Technologies ($1.76 billion), and Life Sciences ($957 million).
Estimated Discount To Fair Value: 21.8%
Corning appears undervalued based on cash flows, trading at US$41.16, below its estimated fair value of US$52.64. The company forecasts annual profit growth of 27.8%, outpacing the broader market's 15%. Recent developments include a share buyback program and an extended distribution agreement with Axion BioSystems for the Corning Cell Counter, enhancing its life sciences portfolio. However, high debt levels and lower-than-expected net income in Q2 2024 are concerns to monitor.
According our earnings growth report, there's an indication that Corning might be ready to expand.
Get an in-depth perspective on Corning's balance sheet by reading our health report here.
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 $8.07 billion.
Operations: Revenue from the Auto Manufacturers segment for XPeng Inc. amounted to CN¥36.24 billion.
Estimated Discount To Fair Value: 24.6%
XPeng, trading at US$8.75, is undervalued based on cash flows with an estimated fair value of US$11.60. The company expects annual profit growth above market average and revenue to grow at 25.5% per year, outpacing the broader market's 8.6%. Despite recent shareholder dilution and low forecasted return on equity (6.2%), XPeng's vehicle deliveries have increased significantly, supported by new product launches like the MONA M03 and advancements in AI technology for autonomous driving.
Where To Now?
Get an in-depth perspective on all 193 Undervalued US Stocks Based On Cash Flows by using our screener here.
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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:ZG NYSE:GLW and NYSE:XPEV.
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