As of late August 2025, the U.S. stock market is experiencing a slight pullback from record highs, with major indices like the S&P 500 and Dow Jones Industrial Average showing minor declines after a strong rally. Despite this dip, there remains an ongoing interest in identifying stocks that may be undervalued amidst fluctuating tech sector performance and economic uncertainties such as inflation rates and potential changes in Federal Reserve policies. In such an environment, finding companies that are priced below their estimated worth can offer investors opportunities to capitalize on potential market corrections or growth prospects.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Udemy (UDMY) | $6.86 | $13.24 | 48.2% |
| SolarEdge Technologies (SEDG) | $33.82 | $67.55 | 49.9% |
| Phibro Animal Health (PAHC) | $37.07 | $70.71 | 47.6% |
| Peapack-Gladstone Financial (PGC) | $29.01 | $56.54 | 48.7% |
| Northwest Bancshares (NWBI) | $12.65 | $24.41 | 48.2% |
| Lyft (LYFT) | $16.22 | $31.03 | 47.7% |
| Investar Holding (ISTR) | $23.44 | $45.84 | 48.9% |
| Fiverr International (FVRR) | $23.55 | $45.46 | 48.2% |
| Excelerate Energy (EE) | $24.42 | $46.63 | 47.6% |
| Corsair Gaming (CRSR) | $8.93 | $17.80 | 49.8% |
We're going to check out a few of the best picks from our screener tool.
Vertex (VERX)
Overview: Vertex, Inc. offers enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries globally and has a market cap of approximately $4.12 billion.
Operations: The company's revenue is primarily derived from its Software & Programming segment, which generated $710.51 million.
Estimated Discount To Fair Value: 31.2%
Vertex, Inc. is trading at US$25.82, significantly below its estimated fair value of US$37.51, suggesting it may be undervalued based on cash flows. Despite a recent net loss and lowered full-year earnings guidance due to extended sales cycles, Vertex's revenue is still forecast to grow annually by 12.5%, outpacing the broader U.S. market growth rate of 9.3%. The company's strategic enhancements in tax automation and integration with major platforms like Oracle could drive future profitability improvements.
- Our comprehensive growth report raises the possibility that Vertex is poised for substantial financial growth.
- Navigate through the intricacies of Vertex with our comprehensive financial health report here.
Crocs (CROX)
Overview: Crocs, Inc. and its subsidiaries design, develop, manufacture, market, distribute, and sell casual lifestyle footwear and accessories under the Crocs and HEYDUDE brands for men, women, and children both in the United States and internationally with a market cap of approximately $4.76 billion.
Operations: The company's revenue segments consist of $3.34 billion from the Crocs Brand and $797.32 million from the HEYDUDE Brand.
Estimated Discount To Fair Value: 40.6%
Crocs, Inc. is trading at US$87.20, significantly below its fair value estimate of US$146.92, highlighting potential undervaluation based on cash flows. Despite a recent net loss and declining profit margins from 20% to 5.7%, earnings are forecast to grow substantially by over 60% annually in the next three years, surpassing market expectations. However, revenue is expected to decline slightly at -0.7% per year amid high debt levels and large one-off financial impacts.
- In light of our recent growth report, it seems possible that Crocs' financial performance will exceed current levels.
- Click here to discover the nuances of Crocs with our detailed financial health report.
Reddit (RDDT)
Overview: Reddit, Inc. operates a digital community platform both in the United States and internationally, with a market cap of $42.13 billion.
Operations: The company generates its revenue from the Internet Information Providers segment, amounting to $1.67 billion.
Estimated Discount To Fair Value: 18.7%
Reddit, Inc. is trading at US$225.08, below its fair value estimate of US$276.85, suggesting potential undervaluation based on cash flows. Despite recent legal challenges and concerns over reduced traffic due to Google's AI enhancements affecting advertising revenue, Reddit's earnings are forecast to grow significantly by 37.2% annually over the next three years, outpacing the broader market's growth expectations. Additionally, revenue growth is projected at a robust 23.9% per year despite ongoing challenges in user engagement metrics.
- Insights from our recent growth report point to a promising forecast for Reddit's business outlook.
- Take a closer look at Reddit's balance sheet health here in our report.
Make It Happen
- Navigate through the entire inventory of 196 Undervalued US Stocks Based On Cash Flows here.
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Looking For Alternative Opportunities?
- 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.
Discover if Crocs 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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