Stocks have bounced back from their early August dip, with the hitting new all-time highs and other indexes attempting to follow. However, at the time of writing, US stock futures are pointing to a sluggish start for September.
Even with the market’s recent rally, several fundamentally strong stocks still trade below their intrinsic value. In this article, we’ll highlight these undervalued stocks that have yet to catch up to the broader market’s gains.
We’ll focus on stocks with two key characteristics:
Their fundamental price targets are significantly higher than their current prices, signaling strong medium-term potential.
They enjoy favor from market consensus.
1. Arcutis Biotherapeutics
Arcutis Biotherapeutics (NASDAQ:) develops and markets innovative dermatological treatments that address a variety of dermatological conditions, such as psoriasis, atopic dermatitis, and seborrheic dermatitis.
In the first quarter, net revenues were $21.6 million and it has a strong cash position of more than $404.5 million. This strong cash reserve will help the company with research and development (R&D) activities as well as marketing efforts.
On November 6, we will know its income statements. Revenue is expected to increase by 59.97%.
Source: InvestingPro
It has 6 ratings, of which 5 are buy, 1 is hold and none are sell.
Its fair value or fundamental price is at $12.81, which is 17.8% above the price at which it closed the week. The market sees tremendous potential for it at $18.57.
Source: InvestingPro
2. Snowflake
Artificial intelligence is transforming every industry. The major tech titans are market darlings, yet under-the-radar AI companies like Snowflake (NYSE:) have quickly risen to become major players in cloud computing and data warehousing.
It announced another solid quarter, with product revenue up. Total revenue increased 28.9% to $828.7 million. Product revenue increased 30% to $829.3 million.
It will report its next quarterly results on November 27. The company’s management has increased its full-year product revenue forecast to 26% growth. This growth rate is…
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