Yahoo Finance Zillow Group Leads Trio Of Value Stock Picks On US Exchange For Investor Consideration
As the U.S. stock market continues to reach new heights, driven by technological advancements and AI enthusiasm, investors are keenly watching for opportunities that might be undervalued in this buoyant environment. Identifying stocks that present potential value involves understanding both the broader economic indicators and specific sector dynamics currently influencing market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
Selective Insurance Group (NasdaqGS:SIGI) | $91.91 | $183.61 | 49.9% |
Hanover Bancorp (NasdaqGS:HNVR) | $16.29 | $32.37 | 49.7% |
Associated Banc-Corp (NYSE:ASB) | $20.36 | $39.54 | 48.5% |
USCB Financial Holdings (NasdaqGM:USCB) | $12.02 | $23.80 | 49.5% |
AppLovin (NasdaqGS:APP) | $80.84 | $158.57 | 49% |
Hollysys Automation Technologies (NasdaqGS:HOLI) | $21.38 | $42.14 | 49.3% |
Hexcel (NYSE:HXL) | $63.26 | $122.84 | 48.5% |
DiDi Global (OTCPK:DIDI.Y) | $4.49 | $8.85 | 49.3% |
HeartCore Enterprises (NasdaqCM:HTCR) | $0.713 | $1.40 | 49.3% |
Rapid7 (NasdaqGM:RPD) | $36.33 | $70.52 | 48.5% |
Let's explore several standout options from the results in the screener
Zillow Group
Overview: Zillow Group, Inc. is a company that operates various real estate brands through mobile applications and websites in the United States, with a market capitalization of approximately $10.98 billion.
Operations: The company generates its revenue primarily from internet information providers, totaling approximately $2.01 billion.
Estimated Discount To Fair Value: 44.2%
Zillow Group is significantly undervalued based on its cash flows, trading at US$47.55, well below the estimated fair value of US$85.29. Despite a forecasted low return on equity of 10% in three years, Zillow is expected to become profitable with earnings growth projected at 63.16% per year and revenue growth anticipated to outpace the US market at 10.8% annually. Recent initiatives like the open-source Fair Housing Classifier highlight Zillow's commitment to equitable real estate practices, potentially boosting its market standing and investor confidence.
The growth report we've compiled suggests that Zillow Group's future prospects could be on the up.
Click here to discover the nuances of Zillow Group with our detailed financial health report.
Clorox
Overview: The Clorox Company, with a market capitalization of $17.13 billion, operates globally, manufacturing and marketing consumer and professional products.
Operations: The company's revenue is divided into several key segments: Household at $2.02 billion, Lifestyle at $1.28 billion, International at $1.20 billion, and Health and Wellness at $2.48 billion.
Estimated Discount To Fair Value: 35.5%
Clorox, currently valued at US$138.63, is priced significantly below its estimated fair value of US$214.91, suggesting a strong undervaluation based on cash flows. Despite this, Clorox faces challenges with a dividend coverage issue and high debt levels. Its earnings are expected to grow by 32.69% annually, outpacing the U.S market projection of 14.8%. However, revenue growth lags behind market expectations at 2.8% per year. Recent strategic moves include seeking mergers and acquisitions to potentially enhance growth trajectories as stated by CFO Kevin Jacobsen earlier this month.
Our growth report here indicates Clorox may be poised for an improving outlook.
Click here and access our complete balance sheet health report to understand the dynamics of Clorox.
Vertiv Holdings Co
Overview: Vertiv Holdings Co (NYSE: VRT) specializes in designing, manufacturing, and servicing critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments globally, with a market capitalization of approximately $33.52 billion.
Operations: Vertiv's revenue is segmented into the Americas at $3.95 billion, Asia Pacific at $1.64 billion, and Europe, the Middle East & Africa at $1.83 billion.
Estimated Discount To Fair Value: 11.2%
Vertiv Holdings Co, trading at US$95.34, is perceived as undervalued compared to its fair value of US$107.39, reflecting a modest discount. The company's earnings are anticipated to increase by 30.27% annually over the next three years, surpassing the U.S market average. However, it carries a high debt burden and has shown significant insider selling recently which might raise concerns about its financial health despite strong revenue growth projections of 9.9% per year and robust future profitability forecasts.
Make It Happen
Navigate through the entire inventory of 174 Undervalued US Stocks Based On Cash Flows 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:CLX and NYSE:VRT.
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