Three Stocks That May Be Undervalued According To Analysts In October 2025

As of October 2025, the U.S. stock market has experienced a mixture of highs and lows, with the S&P 500 and Nasdaq reaching record levels despite ongoing challenges such as a government shutdown. In this environment, identifying undervalued stocks can be particularly appealing to investors looking for potential opportunities in an otherwise volatile market landscape.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Midland States Bancorp (MSBI)	$16.31	$31.48	48.2%
Investar Holding (ISTR)	$22.84	$45.53	49.8%
Horizon Bancorp (HBNC)	$15.56	$30.06	48.2%
First Commonwealth Financial (FCF)	$16.60	$32.97	49.7%
First Busey (BUSE)	$23.29	$45.18	48.5%
Equity Bancshares (EQBK)	$40.89	$78.05	47.6%
Corpay (CPAY)	$290.85	$553.44	47.4%
Atlassian (TEAM)	$147.74	$280.16	47.3%
Alnylam Pharmaceuticals (ALNY)	$456.95	$882.39	48.2%
AGNC Investment (AGNC)	$10.00	$19.71	49.3%

Click here to see the full list of 187 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

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 $15.91 billion.

Operations: The company's revenue is primarily generated from its educational software segment, which amounts to $885.15 million.

Estimated Discount To Fair Value: 29.3%

Duolingo's recent earnings report shows robust growth, with a net income of US$44.78 million, up from US$24.35 million the previous year. The company is trading at 29.3% below its estimated fair value and is highly undervalued based on discounted cash flow analysis. Despite significant insider selling, Duolingo's revenue and earnings are forecast to grow significantly faster than the market, driven by innovative product updates like AI-driven features and expanded course offerings.

• According our earnings growth report, there's an indication that Duolingo might be ready to expand.
• Get an in-depth perspective on Duolingo's balance sheet by reading our health report here.

ON Semiconductor (ON)

Overview: ON Semiconductor Corporation offers intelligent sensing and power solutions across various regions including Hong Kong, Singapore, the United Kingdom, and the United States, with a market cap of approximately $20.81 billion.

Operations: The company's revenue is derived from three main segments: Power Solutions Group ($2.98 billion), Intelligent Sensing Group ($1.03 billion), and Analog & Mixed-Signal Group ($2.39 billion).

Estimated Discount To Fair Value: 16.8%

ON Semiconductor is trading at US$49.97, below its estimated fair value of US$60.06, indicating potential undervaluation based on cash flows. Despite a recent decline in net income and sales, earnings are projected to grow significantly over the next three years, outpacing the broader market's growth rate. Recent collaborations with NVIDIA and advancements in ReRAM technology highlight ON's strategic innovation efforts to enhance efficiency and performance across automotive and AI data center markets.

• In light of our recent growth report, it seems possible that ON Semiconductor's financial performance will exceed current levels.
• Delve into the full analysis health report here for a deeper understanding of ON Semiconductor.

Reddit (RDDT)

Overview: Reddit, Inc. operates a digital community platform both in the United States and internationally, with a market cap of $37.86 billion.

Operations: The company's revenue is primarily derived from its Internet Information Providers segment, totaling $1.67 billion.

Estimated Discount To Fair Value: 28.6%

Reddit is trading at US$211.7, below its estimated fair value of US$296.41, suggesting it may be undervalued based on cash flows. Despite legal challenges and concerns over reduced traffic due to Google's AI changes, Reddit's earnings are expected to grow significantly at 37.8% annually, outpacing the broader market. Recent revenue growth and profitability improvements indicate strong operational performance, though potential disruptions in user traffic remain a concern for future advertising revenues.

• The analysis detailed in our Reddit growth report hints at robust future financial performance.
• Click to explore a detailed breakdown of our findings in Reddit's balance sheet health report.

Seize The Opportunity

• Get an in-depth perspective on all 187 Undervalued US Stocks Based On Cash Flows by using our screener here.
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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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