In the midst of a tech sector slump and heightened market volatility due to tariff uncertainties, investors are on the lookout for opportunities that might be hidden in the current economic landscape. Identifying undervalued stocks can be particularly appealing in such times, as these investments have the potential to offer value by trading below their intrinsic worth.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Wix.com (WIX) | $137.33 | $263.29 | 47.8% |
| Udemy (UDMY) | $6.76 | $13.24 | 49% |
| Phibro Animal Health (PAHC) | $36.685 | $70.71 | 48.1% |
| Peapack-Gladstone Financial (PGC) | $28.96 | $56.54 | 48.8% |
| Northwest Bancshares (NWBI) | $12.625 | $24.41 | 48.3% |
| Niagen Bioscience (NAGE) | $9.88 | $18.87 | 47.6% |
| McGraw Hill (MH) | $14.19 | $27.12 | 47.7% |
| Investar Holding (ISTR) | $23.18 | $45.84 | 49.4% |
| Fiverr International (FVRR) | $23.11 | $45.46 | 49.2% |
| Excelerate Energy (EE) | $23.82 | $46.64 | 48.9% |
Let's take a closer look at a couple of our picks from the screened companies.
Tower Semiconductor (TSEM)
Overview: Tower Semiconductor Ltd. is an independent semiconductor foundry offering technology, development, and process platforms for integrated circuits across the United States, Japan, the rest of Asia, and Europe with a market cap of approximately $6.58 billion.
Operations: The company generates revenue primarily from Contract Electronics Manufacturing Services, amounting to $1.49 billion.
Estimated Discount To Fair Value: 40%
Tower Semiconductor is trading at US$60.71, significantly below its estimated fair value of US$101.26, suggesting it may be undervalued based on cash flows. The company's earnings are forecast to grow 28% annually, surpassing the US market's growth rate of 15.1%. Recent innovations in silicon photonics for AI datacenters could enhance revenue streams, though profit margins have decreased from last year’s levels.
- Our growth report here indicates Tower Semiconductor may be poised for an improving outlook.
- Click to explore a detailed breakdown of our findings in Tower Semiconductor's balance sheet health report.
Gold Royalty (GROY)
Overview: Gold Royalty Corp. is a precious metals-focused royalty company that offers financing solutions to the metals and mining industry, with a market cap of $652.11 million.
Operations: The company's revenue primarily comes from its investment in royalty and mineral stream interests, amounting to $12.38 million.
Estimated Discount To Fair Value: 42.3%
Gold Royalty is trading at US$3.82, under its estimated fair value of US$6.62, indicating potential undervaluation based on cash flows. The company reported a significant increase in sales for Q2 2025 to US$3.82 million from US$1.79 million a year ago, with net losses narrowing to US$0.829 million from US$2.24 million previously. Revenue growth is forecasted at 42.2% annually, outpacing the broader market's growth expectations significantly over the next few years.
- Insights from our recent growth report point to a promising forecast for Gold Royalty's business outlook.
- Click here and access our complete balance sheet health report to understand the dynamics of Gold Royalty.
BBB Foods (TBBB)
Overview: BBB Foods Inc., with a market cap of $3.13 billion, operates a chain of grocery retail stores in Mexico through its subsidiaries.
Operations: The company's revenue primarily comes from the sale, acquisition, and distribution of all types of products and consumer goods, amounting to MX$67.08 billion.
Estimated Discount To Fair Value: 17.4%
BBB Foods is trading at US$26.64, below its fair value estimate of US$32.24, suggesting potential undervaluation. The company is expected to achieve profitability within three years, with revenue growth projected at 21% annually—outperforming the broader U.S. market's 9.3%. Despite a forecasted low return on equity of 17.4%, earnings are anticipated to grow by over 60% annually, reflecting strong cash flow prospects amidst upcoming earnings announcements in August 2025.
- According our earnings growth report, there's an indication that BBB Foods might be ready to expand.
- Unlock comprehensive insights into our analysis of BBB Foods stock in this financial health report.
Next Steps
- Unlock our comprehensive list of 201 Undervalued US Stocks Based On Cash Flows by clicking here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
- Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
Want To Explore Some Alternatives?
- 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.
Valuation is complex, but we're here to simplify it.
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