3 US Stocks Estimated To Be Undervalued In February 2025

As the U.S. market grapples with soaring inflation and fluctuating stock futures, investors are closely monitoring economic indicators that influence market dynamics. In such a volatile environment, identifying undervalued stocks can be a strategic move for those seeking opportunities amidst uncertainty.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Gilead Sciences (NasdaqGS:GILD)	$96.14	$191.74	49.9%
Smurfit Westrock (NYSE:SW)	$53.64	$107.04	49.9%
Bridgewater Bancshares (NasdaqCM:BWB)	$15.21	$30.04	49.4%
DiDi Global (OTCPK:DIDI.Y)	$4.92	$9.56	48.5%
Array Technologies (NasdaqGM:ARRY)	$6.87	$13.66	49.7%
Datadog (NasdaqGS:DDOG)	$145.42	$286.09	49.2%
Constellium (NYSE:CSTM)	$9.46	$18.42	48.7%
Marcus & Millichap (NYSE:MMI)	$37.51	$74.07	49.4%
PowerFleet (NasdaqGM:AIOT)	$8.51	$16.52	48.5%
SolarEdge Technologies (NasdaqGS:SEDG)	$13.37	$26.39	49.3%

Click here to see the full list of 169 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

First Advantage (NasdaqGS:FA)

Overview: First Advantage Corporation offers employment background screening and identity verification solutions globally, with a market cap of approximately $3.34 billion.

Operations: Revenue segments for First Advantage include employment background screening and identity verification solutions provided globally.

Estimated Discount To Fair Value: 48%

First Advantage is trading at US$19.82, significantly below its estimated fair value of US$38.13, indicating it may be undervalued based on cash flows. Despite a recent net loss and diluted earnings per share decline, the company forecasts substantial revenue growth of 30.4% annually, outpacing the broader market's 8.8%. Earnings are also projected to grow at an impressive rate of 78.7% per year, suggesting potential for future financial improvement despite current challenges.

• The growth report we've compiled suggests that First Advantage's future prospects could be on the up.
• Get an in-depth perspective on First Advantage's balance sheet by reading our health report here.

DoubleVerify Holdings (NYSE:DV)

Overview: DoubleVerify Holdings, Inc. operates a software platform for digital media measurement and data analytics globally, with a market cap of approximately $3.71 billion.

Operations: The company generates revenue from its data processing segment, amounting to $638.46 million.

Estimated Discount To Fair Value: 45.9%

DoubleVerify Holdings, priced at US$22.47, is trading significantly below its estimated fair value of US$41.54, reflecting potential undervaluation based on cash flows. Earnings are expected to grow robustly at 21.3% annually, surpassing the broader market's growth rate of 14.6%. Recent strategic initiatives like the AI-powered CTV advertising partnership and GenAI Website Avoidance & Detection solution enhance operational efficiency and brand safety, potentially bolstering future revenue streams despite a forecasted slower revenue growth compared to earnings expansion.

• Our expertly prepared growth report on DoubleVerify Holdings implies its future financial outlook may be stronger than recent results.
• Delve into the full analysis health report here for a deeper understanding of DoubleVerify Holdings.

Provident Financial Services (NYSE:PFS)

Overview: Provident Financial Services, Inc. is a bank holding company for Provident Bank, offering a range of banking products and services to individuals, families, and businesses in the United States, with a market cap of approximately $2.50 billion.

Operations: The company generates its revenue primarily through traditional banking and other financial services, amounting to $607.16 million.

Estimated Discount To Fair Value: 47.7%

Provident Financial Services, trading at US$19.49, is significantly undervalued with a fair value estimate of US$37.29. Despite recent earnings challenges and shareholder dilution, the company's revenue and earnings are projected to grow robustly at 20% and 40.24% annually, respectively—outpacing the market averages. However, profit margins have declined from 28.4% to 19%, and significant insider selling raises caution about future prospects despite its strong cash flow valuation appeal.

• Upon reviewing our latest growth report, Provident Financial Services' projected financial performance appears quite optimistic.
• Dive into the specifics of Provident Financial Services here with our thorough financial health report.

Make It Happen

• Unlock more gems! Our Undervalued US Stocks Based On Cash Flows screener has unearthed 166 more companies for you to explore.Click here to unveil our expertly curated list of 169 Undervalued US Stocks Based On Cash Flows.
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Ready To Venture Into Other Investment Styles?

• 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.

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