As the United States stock market begins 2025 on a cautious note, extending a recent slump with major indices like the S&P 500 and Nasdaq Composite experiencing consecutive losing sessions, investors are keenly observing potential opportunities amidst the downturn. In this environment, identifying undervalued stocks becomes crucial as these may offer attractive entry points for those looking to capitalize on discrepancies between current market prices and intrinsic value.
|
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|
Clear Secure (NYSE:YOU) |
$27.04 |
$53.41 |
49.4% |
|
Argan (NYSE:AGX) |
$143.32 |
$279.51 |
48.7% |
|
Burke & Herbert Financial Services (NasdaqCM:BHRB) |
$60.50 |
$118.65 |
49% |
|
German American Bancorp (NasdaqGS:GABC) |
$38.85 |
$77.34 |
49.8% |
|
Camden National (NasdaqGS:CAC) |
$42.25 |
$84.44 |
50% |
|
Cadence Bank (NYSE:CADE) |
$33.70 |
$65.46 |
48.5% |
|
Kanzhun (NasdaqGS:BZ) |
$13.64 |
$26.99 |
49.5% |
|
HealthEquity (NasdaqGS:HQY) |
$96.81 |
$189.22 |
48.8% |
|
Repligen (NasdaqGS:RGEN) |
$143.05 |
$281.09 |
49.1% |
|
Zillow Group (NasdaqGS:ZG) |
$70.08 |
$137.46 |
49% |
Let’s take a closer look at a couple of our picks from the screened companies.
Overview: First Solar, Inc. is a solar technology company that offers photovoltaic (PV) solar energy solutions across the United States, France, Japan, Chile, and other international markets with a market cap of approximately $18.87 billion.
Operations: The company’s revenue primarily comes from its Modules segment, which generated $3.85 billion.
Estimated Discount To Fair Value: 47.3%
First Solar is trading at US$186.47, significantly below its estimated fair value of US$354.11, suggesting it may be undervalued based on cash flows. The company’s earnings are projected to grow 23.92% annually over the next three years, outpacing both revenue growth and the broader US market’s profit growth rate. Recent earnings reports show robust performance with net income for the third quarter rising to US$312.96 million from US$268.4 million year-on-year.
Overview: Natera, Inc. is a diagnostics company that develops and commercializes molecular testing services globally, with a market cap of approximately $20.90 billion.
Operations: The company generates revenue of approximately $1.53 billion from its molecular testing services worldwide.
