As the U.S. stock market experiences a period of volatility, with major indices like the S&P 500 and Dow Jones Industrial Average facing consecutive declines, investors are keenly observing the impact of high valuations in sectors such as technology. Amidst these fluctuations, identifying stocks that are potentially trading below their intrinsic value can offer opportunities for those looking to navigate current market conditions wisely.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Wix.com (WIX) | $126.92 | $251.66 | 49.6% |
| Warrior Met Coal (HCC) | $78.05 | $155.79 | 49.9% |
| TransMedics Group (TMDX) | $117.07 | $229.89 | 49.1% |
| TowneBank (TOWN) | $32.12 | $62.85 | 48.9% |
| Perfect (PERF) | $1.73 | $3.46 | 50% |
| Horizon Bancorp (HBNC) | $15.63 | $30.81 | 49.3% |
| Hasbro (HAS) | $76.04 | $150.19 | 49.4% |
| GeneDx Holdings (WGS) | $126.92 | $253.46 | 49.9% |
| Caris Life Sciences (CAI) | $23.76 | $46.82 | 49.3% |
| Beacon Financial (BBT) | $24.52 | $48.50 | 49.4% |
Let's review some notable picks from our screened stocks.
Vita Coco Company (COCO)
Overview: The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand across various regions including the United States, Canada, Europe, the Middle East, Africa, and the Asia Pacific with a market cap of approximately $2.65 billion.
Operations: The company's revenue is primarily derived from the Americas segment, which accounts for $515.79 million, while the International segment contributes $93.50 million.
Estimated Discount To Fair Value: 31.3%
Vita Coco Company appears undervalued with shares trading at US$46.59, significantly below the estimated fair value of US$67.85, indicating a potential opportunity based on discounted cash flow analysis. The company has shown robust financial performance with Q3 sales increasing to US$182.31 million and net income rising to US$24 million year-over-year. Additionally, Vita Coco's earnings are forecasted to grow annually by 18.1%, outpacing the broader U.S. market growth rate of 15.9%.
- The growth report we've compiled suggests that Vita Coco Company's future prospects could be on the up.
- Click to explore a detailed breakdown of our findings in Vita Coco Company's balance sheet health report.
Legence (LGN)
Overview: Legence Corp. offers engineering, installation, and maintenance services for mission-critical systems in buildings across the United States, with a market cap of $4.72 billion.
Operations: Legence generates revenue through its engineering, installation, and maintenance services for essential building systems in the U.S.
Estimated Discount To Fair Value: 17.8%
Legence Corp. is trading at US$44.93, below its estimated fair value of US$54.65, offering potential value based on discounted cash flow analysis. Despite a net loss for the nine months ending September 2025, sales increased to US$1.81 billion from US$1.55 billion year-over-year, reflecting strong revenue growth of 19.4%. With earnings expected to grow significantly and profitability anticipated within three years, Legence shows promise despite recent volatility and financial challenges.
- Upon reviewing our latest growth report, Legence's projected financial performance appears quite optimistic.
- Take a closer look at Legence's balance sheet health here in our report.
AbbVie (ABBV)
Overview: AbbVie Inc. is a research-based biopharmaceutical company involved in the research, development, manufacture, commercialization, and sale of medicines and therapies globally, with a market cap of $413.57 billion.
Operations: AbbVie's revenue primarily comes from its Innovative Medicines and Therapies segment, which generated $59.64 billion.
Estimated Discount To Fair Value: 46.4%
AbbVie, trading at US$233.87, is undervalued based on discounted cash flow analysis with a fair value estimate of US$436.05. Despite high debt levels and recent declines in profit margins, earnings are forecast to grow significantly at 32.2% annually over the next three years, surpassing the broader U.S. market's growth rate. Recent FDA approval for EPKINLY in treating follicular lymphoma highlights AbbVie's innovative pipeline potential amidst financial challenges like intangible asset impairments and lower net income compared to last year.
- Our comprehensive growth report raises the possibility that AbbVie is poised for substantial financial growth.
- Unlock comprehensive insights into our analysis of AbbVie stock in this financial health report.
Turning Ideas Into Actions
- Click this link to deep-dive into the 211 companies within our Undervalued US Stocks Based On Cash Flows screener.
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Ready For A Different Approach?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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- 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.
Valuation is complex, but we're here to simplify it.
Discover if AbbVie might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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