3 Stocks That Could Be Trading At A Discount Of Up To 34.5%
DNOW Inc. DNOW | 0.00 |
The United States market has shown a remarkable 26% increase over the past year, despite remaining flat over the last week, with expectations for earnings to grow by 16% annually in the coming years. In this context, identifying stocks that are potentially undervalued can be crucial for investors seeking opportunities that align with these growth prospects and current market stability.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Rayonier (RYN) | $21.02 | $40.87 | 48.6% |
| Oracle (ORCL) | $236.34 | $461.80 | 48.8% |
| Live Oak Bancshares (LOB) | $37.58 | $74.21 | 49.4% |
| Klaviyo (KVYO) | $15.78 | $31.17 | 49.4% |
| Inter & Co (INTR) | $5.76 | $11.10 | 48.1% |
| First Merchants (FRME) | $40.10 | $76.25 | 47.4% |
| FB Financial (FBK) | $53.12 | $101.61 | 47.7% |
| Coastal Financial (CCB) | $70.28 | $134.79 | 47.9% |
| BillionToOne (BLLN) | $104.59 | $203.29 | 48.6% |
| AbbVie (ABBV) | $224.94 | $439.38 | 48.8% |
We'll examine a selection from our screener results.
Andersen Group (ANDG)
Overview: Andersen Group Inc. offers independent tax, valuation, and financial advisory services to individuals, family offices, businesses, and institutional clients in the United States with a market cap of $4.16 billion.
Operations: The company generates $871.37 million from its range of services, including tax, valuation, financial advisory, and related consulting activities.
Estimated Discount To Fair Value: 34.5%
Andersen Group appears undervalued, trading at US$40.06, below its estimated future cash flow value of US$61.19 and 34.5% under fair value estimates. Despite high debt levels, the company is expected to become profitable in three years with a strong forecasted return on equity of over 100%. Recent earnings revealed a significant revenue increase to US$240.75 million for Q1 2026, although net income declined sharply from the previous year.
DNOW (DNOW)
Overview: DNOW Inc. is a company that distributes pipe, valves, fittings, and pumps across the United States, Canada, and internationally with a market cap of $2.42 billion.
Operations: The company's revenue is primarily derived from its Wholesale-Miscellaneous segment, which generated $3.40 billion.
Estimated Discount To Fair Value: 30%
DNOW is trading at US$13.5, significantly below its estimated future cash flow value of US$19.29 and 30% under fair value estimates, indicating it may be undervalued based on cash flows. Despite a net loss of US$44 million in Q1 2026, the company forecasts strong annual earnings growth of 74.19%. Recent share buybacks totaling US$87.23 million suggest confidence in future performance amid slower revenue growth projections compared to industry benchmarks.
Origin Bancorp (OBK)
Overview: Origin Bancorp, Inc. is a bank holding company for Origin Bank, offering banking and financial services to small and medium-sized businesses, municipalities, and retail clients across Texas, Louisiana, Alabama, and Mississippi with a market cap of approximately $1.44 billion.
Operations: Origin Bancorp generates revenue primarily through its Community Banking segment, which accounts for $350.40 million.
Estimated Discount To Fair Value: 33.5%
Origin Bancorp is trading at $48.10, below its estimated future cash flow value of $72.34, highlighting potential undervaluation based on cash flows. The company's forecasted earnings growth of 25.1% annually surpasses the US market average, supported by recent net income improvements to $27.69 million in Q1 2026 from $22.41 million a year ago. Additionally, strategic expansions into Birmingham and continued share buybacks totaling $18.25 million underscore management's confidence in sustained growth and operational stability.
Where To Now?
- Embark on your investment journey to our 132 Undervalued US Stocks Based On Cash Flows selection here.
- Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Looking For Alternative Opportunities?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
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.
