Over the last 7 days, the United States market has risen by 1.7%, contributing to a 12% increase over the past year, with earnings forecasted to grow by 15% annually. In this environment of growth, identifying stocks that may be trading below their fair value estimates can present opportunities for investors seeking to capitalize on potential market inefficiencies.

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

Click here to see the full list of 173 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Futu Holdings

Overview: Futu Holdings Limited operates as a digitalized securities brokerage and wealth management product distributor in Hong Kong and internationally, with a market cap of approximately $16.33 billion.

Operations: The company generates revenue primarily from its online brokerage services and margin financing services, amounting to HK$13.92 billion.

Estimated Discount To Fair Value: 11%

Futu Holdings appears undervalued with its current trading price of US$124.33, which is 11% below the estimated fair value of US$139.68. Despite moderate forecasted revenue growth of 15.7% annually, it surpasses the broader US market's growth rate. Recent earnings reports showed substantial profit increases, with net income more than doubling year-over-year to HKD 2,145.32 million, highlighting strong cash flow potential despite modest future profit growth projections compared to industry peers.

• Our earnings growth report unveils the potential for significant increases in Futu Holdings' future results.
• Navigate through the intricacies of Futu Holdings with our comprehensive financial health report here.

TMC the metals

Overview: TMC the metals company Inc. is a deep-sea minerals exploration firm that specializes in collecting, processing, and refining polymetallic nodules from the seafloor in California, with a market cap of approximately $2.39 billion.

Operations: TMC focuses on the collection, processing, and refining of polymetallic nodules sourced from the seafloor in California.

Estimated Discount To Fair Value: 14.2%

TMC the metals company trades at US$7.49, below its estimated fair value of US$8.73, indicating potential undervaluation based on cash flows. Despite negative equity and no expected revenue next year, earnings are forecast to grow significantly by 59.76% annually, with profitability anticipated in three years. Recent board appointments and a securities purchase agreement with Korea Zinc Company for US$85 million highlight strategic moves as TMC advances its seabed mining initiatives under U.S regulations.

• Insights from our recent growth report point to a promising forecast for TMC the metals' business outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of TMC the metals.

Viking Holdings

Overview: Viking Holdings Ltd operates in the passenger shipping and transport industry across North America, the United Kingdom, and internationally, with a market cap of $22.77 billion.

Operations: The company's revenue is primarily derived from its Ocean segment at $2.31 billion and River segment at $2.70 billion.

Estimated Discount To Fair Value: 44.2%

Viking Holdings, trading at US$51.27, is significantly undervalued based on cash flows with an estimated fair value of US$91.86. Despite a high debt level and recent equity offering raising $1.35 billion, earnings are forecast to grow substantially by 42.3% annually, outpacing the market's growth rate. The company reported reduced net losses and is expanding its fleet with new itineraries and innovative hydrogen-powered ships, underscoring its commitment to sustainable growth in experiential travel markets.

• Our expertly prepared growth report on Viking Holdings implies its future financial outlook may be stronger than recent results.
• Click to explore a detailed breakdown of our findings in Viking Holdings' balance sheet health report.

Make It Happen

• Reveal the 173 hidden gems among our Undervalued US Stocks Based On Cash Flows screener with a single click here.
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Seeking Other Investments?

• 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.

Companies discussed in this article include FUTU TMC and VIK.

This article was originally published by Simply Wall St.

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