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Unveiling Three US Exchange Stocks Estimated To Be Trading Below Their Value

As the U.S. market experiences fluctuations with recent declines in major indices like the Nasdaq and S&P 500, investors might find opportunities in stocks that are potentially undervalued. In times of such market behavior, identifying stocks trading below their intrinsic value could offer attractive entry points for those looking to diversify or strengthen their portfolios.

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

Name

Current Price

Fair Value (Est)

Discount (Est)

Noble (NYSE:NE)

$44.47

$88.34

49.7%

Selective Insurance Group (NasdaqGS:SIGI)

$92.52

$181.60

49.1%

Atlantic Union Bankshares (NYSE:AUB)

$31.13

$60.80

48.8%

Hanover Bancorp (NasdaqGS:HNVR)

$16.90

$32.77

48.4%

Associated Banc-Corp (NYSE:ASB)

$20.29

$39.49

48.6%

USCB Financial Holdings (NasdaqGM:USCB)

$11.88

$23.66

49.8%

DiDi Global (OTCPK:DIDI.Y)

$4.44

$8.83

49.7%

Open Lending (NasdaqGM:LPRO)

$5.79

$11.30

48.7%

Hesai Group (NasdaqGS:HSAI)

$4.22

$8.33

49.3%

Carter Bankshares (NasdaqGS:CARE)

$12.57

$24.27

48.2%

Click here to see the full list of 176 stocks from our Undervalued US Stocks Based On Cash Flows screener.

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Below we spotlight a couple of our favorites from our exclusive screener

DoorDash

Overview: DoorDash, Inc. operates a global commerce platform that links merchants, consumers, and independent contractors primarily in the United States, with a market capitalization of approximately $46.57 billion.

Operations: The company generates its revenue primarily from the Internet Information Providers segment, totaling approximately $9.11 billion.

Estimated Discount To Fair Value: 34.1%

DoorDash, currently trading at US$113.88, is perceived as undervalued based on discounted cash flow analysis, with an estimated fair value of US$172.86. Despite significant insider selling over the past three months, the company's revenue growth is projected to outpace the U.S. market average at 12.7% annually compared to 8.6%. Recent strategic partnerships across diverse sectors including sports retail and beauty enhance its market presence and could support future profitability, which is expected to see substantial growth over the next three years.

NasdaqGS:DASH Discounted Cash Flow as at Jun 2024
NasdaqGS:DASH Discounted Cash Flow as at Jun 2024

Coupang

Overview: Coupang, Inc. operates a comprehensive e-commerce platform through mobile apps and websites in South Korea, with a market capitalization of approximately $38.16 billion.

Operations: The company generates revenue primarily from Product Commerce, which amounted to $24.43 billion, and Developing Offerings, totaling $1.27 billion.

Estimated Discount To Fair Value: 40.1%

Coupang, trading at US$21.34, significantly below its estimated fair value of US$35.65, appears undervalued based on discounted cash flow metrics. Despite recent challenges, including a regulatory fine in Korea and a substantial decline in net income to US$5 million from US$91 million year-over-year, the company's revenue growth remains robust at 15.5% annually. Moreover, earnings are expected to outperform the U.S market with an annual growth rate of 17.8%.

NYSE:CPNG Discounted Cash Flow as at Jun 2024
NYSE:CPNG Discounted Cash Flow as at Jun 2024

Newmont

Overview: Newmont Corporation is a company focused on the production and exploration of gold, with a market capitalization of approximately $48.73 billion.

Operations: The revenue segments for the company are primarily derived from gold production and exploration, with significant contributions from NGM at $2.34 billion, Bodding at $1.70 billion, and Peñasquito at $1.00 billion, alongside other operations including CC&V, Ahafo, Akyem, Merian, Tanami, Porcupine, Yanacocha, Éléonore, Cerro Negro and Musselwhite generating additional revenues.

Estimated Discount To Fair Value: 12.4%

Newmont, priced at US$42.26, is trading below its fair value of US$48.22, reflecting a modest undervaluation based on discounted cash flow analysis. Despite a recent dip in net income from US$351 million to US$170 million and a 4% drop in gold production, the company's revenue growth is still strong at 9% annually and expected to surpass the U.S market average. However, its dividend coverage remains weak due to insufficient earnings and cash flows.

NYSE:NEM Discounted Cash Flow as at Jun 2024
NYSE:NEM Discounted Cash Flow as at Jun 2024

Key Takeaways

Want To Explore Some Alternatives?

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:DASH NYSE:CPNG and NYSE:NEM.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com