3 US Stocks Estimated To Be Trading Below Fair Value By At Least 32.1%
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As the U.S. markets continue to reach new heights, with the Dow Jones Industrial Average notching its 39th record close of the year, investors are keenly observing opportunities amidst this robust economic landscape. In such a thriving market environment, identifying stocks that are trading below their fair value can be particularly appealing for those looking to capitalize on potential growth while maintaining a focus on sound investment fundamentals.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Hanover Bancorp (NasdaqGS:HNVR) | $19.06 | $37.01 | 48.5% |
| California Resources (NYSE:CRC) | $52.32 | $103.74 | 49.6% |
| Atlanticus Holdings (NasdaqGS:ATLC) | $37.41 | $72.49 | 48.4% |
| Coastal Financial (NasdaqGS:CCB) | $60.74 | $120.88 | 49.8% |
| Avidbank Holdings (OTCPK:AVBH) | $19.60 | $37.86 | 48.2% |
| HealthEquity (NasdaqGS:HQY) | $88.00 | $175.93 | 50% |
| EVERTEC (NYSE:EVTC) | $33.45 | $66.19 | 49.5% |
| Vitesse Energy (NYSE:VTS) | $25.36 | $49.21 | 48.5% |
| AeroVironment (NasdaqGS:AVAV) | $215.63 | $416.80 | 48.3% |
| Reddit (NYSE:RDDT) | $76.29 | $149.28 | 48.9% |
Let's explore several standout options from the results in the screener.
Wix.com
Overview: Wix.com Ltd. operates as a cloud-based web development platform serving registered users and creators globally, with a market cap of approximately $9.61 billion.
Operations: The company's revenue primarily comes from its Internet Software & Services segment, totaling $1.65 billion.
Estimated Discount To Fair Value: 32.1%
Wix.com is trading at US$177.24, significantly below its estimated fair value of US$261.06, suggesting it may be undervalued based on cash flows. The company has become profitable this year and forecasts indicate earnings growth of 32% annually over the next three years, outpacing the broader U.S. market's growth rate. Despite a high level of debt, Wix's revenue is expected to grow faster than the market average at 11.4% per year.
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Our growth report here indicates Wix.com may be poised for an improving outlook.
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Take a closer look at Wix.com's balance sheet health here in our report.
Live Nation Entertainment
Overview: Live Nation Entertainment, Inc. is a global live entertainment company with a market cap of approximately $26.35 billion.
Operations: The company's revenue is primarily derived from its Concerts segment at $19.72 billion, followed by Ticketing at $3.03 billion, and Sponsorship & Advertising contributing $1.15 billion.
Estimated Discount To Fair Value: 39.5%
Live Nation Entertainment, trading at US$115.21, is valued 39.5% below its fair value estimate of US$190.32, indicating potential undervaluation based on cash flows. Earnings are projected to grow significantly at 28.8% annually over the next three years, surpassing the U.S. market average growth rate of 15.2%. Despite slower revenue growth compared to the market and recent earnings showing mixed results, strong future earnings prospects highlight its potential value opportunity.