The United States market remained flat over the last week, yet it has experienced a notable 20% rise over the past 12 months, with earnings forecasted to grow by 18% annually. In such an environment, identifying stocks that are potentially trading below their estimated fair value can be a prudent approach for investors seeking opportunities for growth.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name	Current Price	Fair Value (Est)	Discount (Est)
Victoria's Secret (VSXY)	$78.36	$151.62	48.3%
Q2 Holdings (QTWO)	$51.83	$103.06	49.7%
Lazard (LAZ)	$41.41	$82.45	49.8%
Klaviyo (KVYO)	$16.91	$33.27	49.2%
Inter & Co (INTR)	$5.82	$11.51	49.4%
Genuine Parts (GPC)	$125.62	$247.98	49.3%
Caledonia Mining (CMCL)	$17.76	$33.71	47.3%
Betterware de MéxicoP.I. de (BWMX)	$18.25	$36.34	49.8%
Beacon Financial (BBT)	$30.19	$59.59	49.3%
Amaroq (AMRQ.F)	$1.155	$2.24	48.3%

We're going to check out a few of the best picks from our screener tool.

Inter & Co (INTR)

Overview: Inter & Co, Inc. operates in banking and spending, investments, insurance brokerage, and inter shop sectors in Brazil and the United States with a market cap of $2.57 billion.

Operations: The company's revenue segments are comprised of R$5.21 billion from banking and spending, R$269.50 million from investments, R$236.96 million from insurance brokerage, and R$417.78 million from the inter shop sector.

Estimated Discount To Fair Value: 49.4%

Inter & Co is trading at 49.4% below its estimated fair value and more than 20% below future cash flow value, suggesting it might be undervalued based on cash flows. The company's earnings are projected to grow significantly over the next three years, outpacing the US market. However, challenges include a high level of bad loans (10%). Recent expansion into Miami enhances its US presence, potentially optimizing funding and operational efficiency.

On Holding (ONON)

Overview: On Holding AG, with a market cap of $12.76 billion, develops and distributes performance sports products under the On brand across Switzerland, Europe, the Middle East, Africa, the United States, other parts of the Americas, and Asia-Pacific.

Operations: The company generates revenue primarily from its Athletic Footwear segment, which accounted for CHF 3.12 billion.

Estimated Discount To Fair Value: 30.7%

On Holding is trading over 20% below its estimated future cash flow value, indicating potential undervaluation. The company's earnings are forecast to grow at 23.18% annually, surpassing the US market's growth rate. Recent leadership changes, with Rebecca Cai and Alice Delahunt taking key roles, could enhance global market strategies and customer engagement. Despite slower revenue growth compared to earnings, On Holding's strategic appointments may support its expansion and operational goals across various regions.

V.F (VFC)

Overview: V.F. Corporation, along with its subsidiaries, provides branded apparel, footwear, and accessories for men, women, and children across the Americas, Europe, and the Asia-Pacific regions with a market cap of approximately $6.57 billion.

Operations: The company's revenue segments include Active at $2.72 billion and Outdoor at $5.74 billion.

Estimated Discount To Fair Value: 32%

V.F. Corporation is trading at 32% below its estimated fair value, suggesting it may be undervalued based on cash flows. Despite a forecasted revenue growth of 2.1% per year, slower than the US market, earnings are expected to grow significantly at 23.9% annually, outpacing market averages. However, debt coverage by operating cash flow is weak and the dividend track record remains unstable amidst recent shareholder activism concerning animal welfare policies.

Make It Happen

• Dive into all 140 of the Undervalued US Stocks Based On Cash Flows we have identified 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.