Pinnacle Financial Partners is the leading provider of three US stocks that are expected to trade below their value

As the U.S. stock market experiences a mix of sharp declines and record highs, and sectors like technology face significant volatility due to geopolitical tensions and regulatory concerns, investors are navigating a complex environment. In this environment, it is critical to identify potentially undervalued stocks that offer opportunities for those looking for value in a volatile market.

The 10 most undervalued stocks in the US based on their cash flow

Click here to see the full list of 174 stocks from our Undervalued U.S. Stocks Based on Cash Flow screener.

Here we highlight a subset of our favorite stocks from the screener.

Overview: Pinnacle Financial Partners, Inc. is a bank holding company of Pinnacle Bank. It provides a range of banking products and services to individuals, businesses, and professionals throughout the United States and has a market capitalization of approximately $6.98 billion.

Operations: The bank offers a variety of financial services and products in the United States and has a market capitalization of approximately $6.98 billion.

Estimated discount to fair value: 47.2%

Pinnacle Financial Partners currently trades at $93.97, well below its estimated fair value of $178.13 and indicating a potential undervaluation of 47.2%. Despite this, challenges remain, as evidenced by the recent decline in profit margins from 37.9% to 26.1%, as well as significant insider selling in the last quarter. However, the company’s earnings are expected to grow at an annual rate of 28.14% over the next three years, outperforming both its historical revenue growth and broader market expectations.

Overview: Equifax Inc. is a data, analytics and technology company with a market capitalization of approximately $32.71 billion.

Operations: The company generates revenue in three main segments: International ($1.27 billion), Workforce Solutions ($2.32 billion) and US Information Solutions ($1.76 billion).

Estimated discount to fair value: 38.6%

Equifax appears undervalued with a current trading price of $259.25 versus an estimated fair value of $422.32. Recent financials show a robust rebound, with second quarter revenues rising to $1,430.5 million and net income rising to $163.9 million, supporting an optimistic outlook for sustainable revenue growth and profitability improvement. Despite this promising scenario, the company continues to carry significant debt, which could impact its financial agility going forward. Projected annual earnings growth of 22% per year over the next three years exceeds broad market expectations, positioning Equifax favorably in terms of recovery potential and long-term value creation.

Overview: On Holding AG is a global company specializing in the development and distribution of sports products and has a market capitalization of approximately 12.50 billion US dollars.

Operations: The company generates its sales mainly from sports shoes and amounts to a total of CHF 1.88 billion.

Estimated discount to fair value: 27.8%

On Holding is trading at $40.36, 27.8% below its calculated fair value of $55.88, suggesting significant undervaluation based on cash flows. The company’s earnings have grown 44.2% over the past year and it is expected to grow 25.9% annually, beating the US market forecast of 14.8%. Despite a low forecast return on equity of 19.8%, recent strategic moves such as the appointment of Laura Miele to the board and the launch of sustainable products such as the Cloudeasy Cyclon shoe underscore a robust growth trajectory and commitment to innovation.

Where to now?

• Unlock our comprehensive list of 174 undervalued U.S. stocks based on cash flow by clicking here.
• Are you a shareholder in one or more of these companies? Make sure you’re never caught off guard by adding your portfolio to Simply Wall St and receive timely alerts about important stock developments.
• Simply Wall St is a revolutionary app for long-term stock investors; it’s free and covers every market in the world.

Ready for a different approach?

This Simply Wall St article is of a general nature. We comment based solely on historical data and analyst forecasts, using an unbiased methodology. Our articles are not intended as financial advice. They are not a recommendation to buy or sell stocks and do not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

Do you have feedback on this article? Are you interested in the content? Contact us directly. Alternatively, send an email to [email protected]