As of March 2025, the U.S. stock market has seen a notable surge, with major indices like the S&P 500 and Nasdaq Composite making significant gains following positive developments around tariff policies. This environment presents an opportunity for investors to explore stocks that are trading below their estimated value, particularly as market conditions continue to evolve and investor sentiment improves.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Provident Financial Services (NYSE:PFS) | $17.39 | $34.68 | 49.8% |
| Dime Community Bancshares (NasdaqGS:DCOM) | $28.66 | $56.79 | 49.5% |
| ACNB (NasdaqCM:ACNB) | $42.07 | $82.45 | 49% |
| KBR (NYSE:KBR) | $51.34 | $101.08 | 49.2% |
| Smurfit Westrock (NYSE:SW) | $45.02 | $89.93 | 49.9% |
| Midland States Bancorp (NasdaqGS:MSBI) | $18.10 | $35.67 | 49.3% |
| HealthEquity (NasdaqGS:HQY) | $90.32 | $179.14 | 49.6% |
| Ligand Pharmaceuticals (NasdaqGM:LGND) | $111.67 | $220.76 | 49.4% |
| Constellium (NYSE:CSTM) | $11.38 | $22.45 | 49.3% |
| Albemarle (NYSE:ALB) | $77.55 | $152.79 | 49.2% |
Below we spotlight a couple of our favorites from our exclusive screener.
Ciena (NYSE:CIEN)
Overview: Ciena Corporation is a network technology company that offers hardware, software, and services to network operators across multiple regions worldwide, with a market cap of approximately $9.32 billion.
Operations: The company's revenue is derived from four main segments: Networking Platforms at $3.06 billion, Global Services at $540.45 million, Platform Software and Services at $363.38 million, and Blue Planet Automation Software and Services at $89.71 million.
Estimated Discount To Fair Value: 26.3%
Ciena is trading at US$69.53, below its estimated fair value of US$94.38, suggesting it may be undervalued based on discounted cash flow analysis. Despite recent insider selling and a decline in net profit margin from 5.1% to 2%, Ciena's earnings are projected to grow significantly at over 51% annually, outpacing the broader U.S. market growth rate of 13.9%. Recent strategic deployments with major clients like Lumen and Cirion Technologies enhance its market position and technological capabilities, potentially supporting future cash flows.
- According our earnings growth report, there's an indication that Ciena might be ready to expand.
- Get an in-depth perspective on Ciena's balance sheet by reading our health report here.
Oracle (NYSE:ORCL)
Overview: Oracle Corporation provides products and services for enterprise information technology environments globally, with a market cap of approximately $426.89 billion.
Operations: Oracle's revenue is primarily derived from three segments: Cloud and License at $47.60 billion, Services at $5.26 billion, and Hardware at $2.93 billion.
Estimated Discount To Fair Value: 36.5%
Oracle, trading at US$154.87, is significantly below its estimated fair value of US$243.8, highlighting potential undervaluation based on cash flows. Despite high debt levels, Oracle's revenue and earnings are forecast to grow faster than the U.S. market. Recent collaborations with NVIDIA and Tractian Technologies enhance Oracle Cloud Infrastructure's capabilities in AI development and industrial applications, potentially supporting future revenue streams and strengthening its position in the cloud computing sector.
- Our comprehensive growth report raises the possibility that Oracle is poised for substantial financial growth.
- Delve into the full analysis health report here for a deeper understanding of Oracle.
Charles Schwab (NYSE:SCHW)
Overview: The Charles Schwab Corporation is a savings and loan holding company offering wealth management, securities brokerage, banking, asset management, custody, and financial advisory services both in the United States and internationally, with a market cap of approximately $142.17 billion.
Operations: Charles Schwab's revenue is primarily derived from its Advisor Services segment, contributing $4.05 billion, and Investor Services segment, generating $15.56 billion.
Estimated Discount To Fair Value: 13.1%
Charles Schwab, priced at US$79.96, trades below its estimated fair value of US$91.96, suggesting potential undervaluation based on cash flows. Earnings are projected to grow 14.44% annually, outpacing the broader U.S. market's growth rate. Recent actions include a substantial share buyback and a follow-on equity offering of $13.11 billion, reflecting strategic capital management amid TD Bank's divestment of its 10.1% stake in Schwab for $5.6 billion.
- In light of our recent growth report, it seems possible that Charles Schwab's financial performance will exceed current levels.
- Click here and access our complete balance sheet health report to understand the dynamics of Charles Schwab.
Taking Advantage
- Click this link to deep-dive into the 195 companies within our Undervalued US Stocks Based On Cash Flows screener.
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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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