As of late September 2025, U.S. stock markets have experienced a downturn with major indices like the Dow Jones Industrial Average and the S&P 500 closing lower for two consecutive sessions, primarily due to declines in technology stocks despite an outperforming energy sector. Amidst these fluctuations and concerns over high valuations as noted by Federal Reserve Chair Jerome Powell, identifying undervalued stocks becomes crucial for investors seeking opportunities that may offer growth potential without the premium price tags associated with some sectors.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Udemy (UDMY) | $7.01 | $13.70 | 48.8% |
| Pinnacle Financial Partners (PNFP) | $95.09 | $186.59 | 49% |
| Peapack-Gladstone Financial (PGC) | $28.42 | $56.54 | 49.7% |
| Northwest Bancshares (NWBI) | $12.48 | $24.41 | 48.9% |
| Niagen Bioscience (NAGE) | $9.52 | $18.64 | 48.9% |
| NeuroPace (NPCE) | $10.22 | $20.05 | 49% |
| Metropolitan Bank Holding (MCB) | $76.84 | $150.26 | 48.9% |
| Horizon Bancorp (HBNC) | $16.20 | $31.77 | 49% |
| Glaukos (GKOS) | $82.79 | $161.43 | 48.7% |
| Alnylam Pharmaceuticals (ALNY) | $458.37 | $900.09 | 49.1% |
Let's take a closer look at a couple of our picks from the screened companies.
Alnylam Pharmaceuticals (ALNY)
Overview: Alnylam Pharmaceuticals, Inc. focuses on discovering, developing, and commercializing therapeutics based on ribonucleic acid interference and has a market cap of approximately $59.56 billion.
Operations: The company's revenue is primarily derived from the discovery, development, and commercialization of RNAi therapeutics, totaling $2.46 billion.
Estimated Discount To Fair Value: 49.1%
Alnylam Pharmaceuticals is currently trading at US$458.37, significantly below its estimated fair value of US$900.09, suggesting it may be undervalued based on cash flows. The company anticipates revenue growth of 26.3% annually, outpacing the broader U.S. market's 9.8%. Despite recent insider selling and a net loss reported for Q2 2025, Alnylam is expected to achieve profitability within three years, with earnings projected to grow substantially by 54% per year.
- Insights from our recent growth report point to a promising forecast for Alnylam Pharmaceuticals' business outlook.
- Dive into the specifics of Alnylam Pharmaceuticals here with our thorough financial health report.
Burlington Stores (BURL)
Overview: Burlington Stores, Inc. operates as a retailer of branded merchandise in the United States and Puerto Rico, with a market cap of approximately $16.19 billion.
Operations: The company's revenue is primarily generated from its retail segment, specifically apparel, which accounts for $11.01 billion.
Estimated Discount To Fair Value: 11%
Burlington Stores is trading at US$267.17, below its estimated fair value of US$300.21, indicating potential undervaluation based on cash flows. Despite a high debt level, the company reported strong earnings growth of 27.7% over the past year and forecasts suggest annual profit growth of 20.9%, outpacing the U.S. market's average. Recent buybacks totaling US$368.34 million further enhance shareholder value amidst ongoing revenue growth and strategic board changes.
- The analysis detailed in our Burlington Stores growth report hints at robust future financial performance.
- Get an in-depth perspective on Burlington Stores' balance sheet by reading our health report here.
Comfort Systems USA (FIX)
Overview: Comfort Systems USA, Inc. offers mechanical and electrical installation, renovation, maintenance, repair, and replacement services across the United States with a market cap of $28.31 billion.
Operations: The company generates revenue through its Electrical Services segment, which accounts for $1.75 billion, and its Mechanical Services segment, contributing $5.93 billion.
Estimated Discount To Fair Value: 27.7%
Comfort Systems USA, trading at US$791.46, is undervalued based on cash flows with an estimated fair value of US$1,094.36. The company reported strong earnings growth in the past year and forecasts suggest earnings will grow 17.7% annually, surpassing U.S. market averages. Recent financial restructuring increased its credit facility to US$1.1 billion, supporting future growth initiatives while maintaining a robust balance sheet with no substantial insider selling recently observed.
- According our earnings growth report, there's an indication that Comfort Systems USA might be ready to expand.
- Delve into the full analysis health report here for a deeper understanding of Comfort Systems USA.
Turning Ideas Into Actions
- Investigate our full lineup of 197 Undervalued US Stocks Based On Cash Flows right here.
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Seeking Other Investments?
- 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 Comfort Systems USA 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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