As the United States stock market experiences a resurgence, with major indices like the Nasdaq, Dow Jones Industrial Average, and S&P 500 climbing on strong tech earnings and easing geopolitical tensions, investors are increasingly focused on identifying opportunities that may be undervalued. In this environment of fluctuating oil prices and robust tech performance, discerning stocks that are priced below their estimated value can offer potential advantages for those looking to capitalize on market dynamics.
|
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|
Workiva (WK) |
$86.27 |
$166.75 |
48.3% |
|
VTEX (VTEX) |
$3.60 |
$6.99 |
48.5% |
|
Valley National Bancorp (VLY) |
$11.73 |
$23.10 |
49.2% |
|
Perfect (PERF) |
$1.77 |
$3.42 |
48.2% |
|
Investar Holding (ISTR) |
$26.93 |
$53.60 |
49.8% |
|
Horizon Bancorp (HBNC) |
$17.33 |
$34.22 |
49.4% |
|
Fifth Third Bancorp (FITB) |
$48.57 |
$94.74 |
48.7% |
|
Fidelity National Information Services (FIS) |
$63.98 |
$124.45 |
48.6% |
|
Constellium (CSTM) |
$22.77 |
$45.27 |
49.7% |
|
Aptiv (APTV) |
$82.93 |
$165.49 |
49.9% |
Here’s a peek at a few of the choices from the screener.
Overview: Calix, Inc. offers cloud and software platforms, systems, and services across various regions including the United States, Europe, and Asia Pacific with a market cap of $3.60 billion.
Operations: The company generates revenue of $933.68 million from developing, marketing, and selling communications access systems and software.
Estimated Discount To Fair Value: 26.3%
Calix is trading at US$54.96, significantly below its estimated fair value of US$74.58, indicating potential undervaluation based on cash flows. Despite recent insider selling, Calix’s strategic advancements in AI-driven broadband solutions and partnerships with companies like CoastConnect highlight its strong operational framework and growth prospects. The company’s revenue is forecast to grow at 13.3% annually, outpacing the broader U.S. market’s growth rate of 10.5%, while profitability is expected within three years.
Overview: Cinemark Holdings, Inc., along with its subsidiaries, operates in the motion picture exhibition business and has a market cap of approximately $2.68 billion.
Operations: The company’s revenue primarily comes from its U.S. operations, generating $2.54 billion, and international operations, contributing $626.60 million.
Estimated Discount To Fair Value: 16.6%
Cinemark Holdings, trading at US$24.08, is below its estimated fair value of US$28.86, presenting a potential undervaluation based on cash flows. Despite recent declines in revenue and net income compared to last year, earnings are forecast to grow significantly over the next three years. The company is actively pursuing M&A opportunities and has announced a US$300 million share repurchase program, indicating strategic capital allocation priorities amidst high debt levels.
Overview: REV Group, Inc. designs, manufactures, and distributes specialty vehicles and related aftermarket parts and services both in North America and internationally, with a market cap of $3.33 billion.
Operations: The company’s revenue segments include Specialty Vehicles at $1.81 billion and Recreational Vehicles at $649.20 million.
Estimated Discount To Fair Value: 23.4%
REV Group, trading below its estimated fair value of US$88.94 at US$68.15, demonstrates potential undervaluation based on cash flows. Despite a decline in net income to US$95.2 million from the previous year’s US$257.6 million, earnings are projected to grow significantly over the next three years at 26.8% annually, outpacing the broader market growth rate of 16.1%. The company is involved in a merger with Terex Corporation valued at $3.2 billion, expected to close in early 2026.
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 CALX CNK and REVG.
This article was originally published by Simply Wall St.
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