Top 3 US Stocks Estimated To Be Undervalued In July 2024

Amid a buoyant U.S. stock market, with the Dow Jones Industrial and S&P 500 hitting record highs, investors are keenly observing market trends and economic indicators. In such an environment, identifying undervalued stocks becomes crucial as they may present opportunities for value investing amidst prevailing market highs.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Noble (NYSE:NE)	$48.26	$93.23	48.2%
UMB Financial (NasdaqGS:UMBF)	$97.08	$189.41	48.7%
Hilton Grand Vacations (NYSE:HGV)	$44.17	$87.20	49.3%
LGI Homes (NasdaqGS:LGIH)	$107.23	$205.90	47.9%
Tilray Brands (NasdaqGS:TLRY)	$1.93	$3.85	49.9%
Vasta Platform (NasdaqGS:VSTA)	$3.01	$5.92	49.1%
Nutanix (NasdaqGS:NTNX)	$50.38	$97.87	48.5%
TAL Education Group (NYSE:TAL)	$10.00	$19.91	49.8%
MediaAlpha (NYSE:MAX)	$14.29	$27.64	48.3%
Alnylam Pharmaceuticals (NasdaqGS:ALNY)	$249.83	$482.95	48.3%

Click here to see the full list of 171 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Intuit

Overview: Intuit Inc. offers financial management and compliance products and services for a diverse range of users including consumers, small businesses, and accounting professionals across the U.S., Canada, and other global markets, with a market capitalization of approximately $183.99 billion.

Operations: The company generates revenue through four primary segments: Pro-Tax at $0.60 billion, Consumer at $4.46 billion, Credit Karma at $1.65 billion, and Small Business and Self-Employed at $9.11 billion.

Estimated Discount To Fair Value: 23.8%

Intuit, currently trading at US$666.15, is perceived as undervalued with its market price standing 23.8% below the estimated fair value of US$873.99 based on discounted cash flows. Despite not being highly undervalued, its earnings and revenue growth projections outpace the broader U.S. market, with expected annual profit growth at 16.4% and revenue growth at 11.4%. Recent strategic index inclusions and innovative product launches like Mailchimp's revenue intelligence technology underscore its commitment to leveraging AI for enhanced marketing efficacy, potentially bolstering future cash flows.

• Insights from our recent growth report point to a promising forecast for Intuit's business outlook.

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

NasdaqGS:INTU Discounted Cash Flow as at Jul 2024

Marvell Technology

Overview: Marvell Technology, Inc. and its subsidiaries specialize in providing data infrastructure semiconductor solutions from the data center core to network edge, with a market capitalization of approximately $63.71 billion.

Operations: The company generates revenue primarily through the design, development, and sale of integrated circuits, amounting to $5.35 billion.

Estimated Discount To Fair Value: 12.6%

Marvell Technology, priced at US$75.6, trades 12.6% below its fair value of US$86.53, suggesting undervaluation based on cash flows. Despite a modest forecasted return on equity at 15.3%, the company's revenue growth is expected to surpass the U.S market average significantly, with earnings projected to rise by 59.18% annually. Recently added to several Russell indexes and launching innovative products like the Alaska A 1.6T PAM4 DSP, Marvell is poised for impactful market presence and profitability within three years.

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

• Get an in-depth perspective on Marvell Technology's balance sheet by reading our health report here.

NasdaqGS:MRVL Discounted Cash Flow as at Jul 2024

Oracle

Overview: Oracle Corporation provides a wide range of products and services tailored for enterprise information technology environments globally, with a market capitalization of approximately $394.28 billion.

Operations: The company generates revenue primarily through three segments: Cloud and License at $44.46 billion, Services at $5.43 billion, and Hardware at $3.07 billion.

Estimated Discount To Fair Value: 40.9%

Oracle, currently trading at US$142.61, appears undervalued based on a DCF valuation of US$241.31, indicating potential underpricing by market standards. The company's robust forecasted earnings growth of 15.9% annually outpaces the U.S market average of 14.8%. Additionally, Oracle is expected to maintain a high Return on Equity (ROE) of 46.2% in three years, signaling strong profitability relative to its equity base despite its high level of debt. Recent product launches like Exadata Exascale and strategic alliances enhance its competitive position and operational efficiency in cloud services and AI-driven data architectures.

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

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

NYSE:ORCL Discounted Cash Flow as at Jul 2024

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Seeking Other Investments?

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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:INTU NasdaqGS:MRVL and NYSE:ORCL.

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