3 Stocks Estimated To Be Undervalued In June 2025

In the last week, the United States market has been flat, yet it has risen by 9.9% over the past year with earnings projected to grow by 15% annually in the coming years. In this context of steady growth and potential earnings expansion, identifying undervalued stocks can be a strategic move for investors looking to capitalize on opportunities that may offer value relative to their current price levels.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
TransMedics Group (TMDX)	$124.00	$247.57	49.9%
StoneCo (STNE)	$14.86	$29.32	49.3%
Shoals Technologies Group (SHLS)	$5.225	$10.39	49.7%
Roku (ROKU)	$81.43	$160.46	49.3%
Peoples Financial Services (PFIS)	$47.14	$93.66	49.7%
MAC Copper (MTAL)	$11.94	$23.53	49.3%
Lincoln Educational Services (LINC)	$22.53	$44.38	49.2%
German American Bancorp (GABC)	$36.80	$72.97	49.6%
Central Pacific Financial (CPF)	$26.02	$51.99	50%
Arrow Financial (AROW)	$24.93	$49.74	49.9%

Click here to see the full list of 170 stocks from our Undervalued US Stocks Based On Cash Flows screener.

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

Duolingo (DUOL)

Overview: Duolingo, Inc. operates as a mobile learning platform in the United States, the United Kingdom, and internationally with a market cap of approximately $21.65 billion.

Operations: The company generates revenue primarily from its educational software segment, totaling $811.21 million.

Estimated Discount To Fair Value: 11.3%

Duolingo's recent financial performance shows strong growth, with Q1 2025 earnings of US$35.14 million and sales of US$230.74 million, reflecting robust demand for its language courses. The company is trading at approximately 11% below its estimated fair value of US$539.73, suggesting potential undervaluation based on cash flows. Revenue and earnings are forecast to grow significantly faster than the market average over the next three years, driven by innovative product expansions like their new language courses powered by generative AI.

• The growth report we've compiled suggests that Duolingo's future prospects could be on the up.
• Take a closer look at Duolingo's balance sheet health here in our report.

Estée Lauder Companies (EL)

Overview: The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products globally with a market capitalization of approximately $26.91 billion.

Operations: The company's revenue is primarily derived from skin care ($7.29 billion), makeup ($4.33 billion), fragrance ($2.47 billion), and hair care products ($589 million).

Estimated Discount To Fair Value: 30.4%

Estée Lauder is trading at US$74.72, significantly below its estimated fair value of US$107.31, indicating potential undervaluation based on cash flows. Despite a high debt level and a dividend not well covered by earnings, the company is forecast to achieve above-average profit growth over the next three years. Recent leadership changes aim to strengthen strategic direction and innovation in makeup brands, potentially enhancing future cash flow generation despite current revenue challenges in global travel retail markets.

• Our comprehensive growth report raises the possibility that Estée Lauder Companies is poised for substantial financial growth.
• Dive into the specifics of Estée Lauder Companies here with our thorough financial health report.

EQT (EQT)

Overview: EQT Corporation is involved in the production, gathering, and transmission of natural gas, with a market cap of approximately $35.24 billion.

Operations: The company's revenue segments include Gathering at $1.04 billion and Production at $5.89 billion.

Estimated Discount To Fair Value: 49.2%

EQT Corporation, trading at US$59.37, is considerably below its estimated fair value of US$116.89, suggesting potential undervaluation based on cash flows. Despite recent executive changes and a completed share buyback program, the company forecasts robust earnings growth of 33.1% annually over the next three years, outpacing the broader US market. However, profit margins have decreased from last year and shareholders experienced significant dilution in the past year.

• Upon reviewing our latest growth report, EQT's projected financial performance appears quite optimistic.
• Navigate through the intricacies of EQT with our comprehensive financial health report here.

Where To Now?

• Embark on your investment journey to our 170 Undervalued US Stocks Based On Cash Flows selection here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Ready For A Different Approach?

• 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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