Truist Financial Corp (TFC) saw its stock price soar by 5.08% in pre-market trading on Wednesday, as investors appear to be recognizing the potential value in this financial services company. The significant uptick comes as recent analysis suggests that Truist may be substantially undervalued based on cash flow estimates.

According to a report highlighting undervalued U.S. stocks, Truist Financial is currently trading at $36.34, which is estimated to be 49.2% below its fair value of $71.55. This considerable discount to the estimated intrinsic value has likely caught the attention of value investors and could be driving the sudden surge in stock price. The potential for significant upside may be encouraging investors to take positions in the stock, contributing to the pre-market rally.

The broader U.S. market context also plays a role in this movement. While the market has seen a slight decline of 1.7% over the past week, it remains up 3.6% over the year. In this environment, stocks that appear undervalued based on cash flows are attracting increased interest from investors looking for growth opportunities at a discount. Truist Financial's position as one of the top undervalued stocks in this analysis seems to have resonated with the market, potentially explaining the strong pre-market performance.