Stock Analysis

3 Stocks Estimated To Be Up To 48.5% Below Intrinsic Value

NasdaqGS:MBLY
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The United States stock market has experienced a significant surge, with major indices like the Dow Jones Industrial Average and the Nasdaq Composite climbing sharply following an easing of trade tensions between the U.S. and China. As investors navigate these buoyant market conditions, identifying undervalued stocks becomes crucial for those looking to capitalize on potential growth opportunities that may arise from current economic developments.

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

NameCurrent PriceFair Value (Est)Discount (Est)
Burke & Herbert Financial Services (NasdaqCM:BHRB)$56.71$111.2649%
KBR (NYSE:KBR)$55.20$108.7249.2%
First Reliance Bancshares (OTCPK:FSRL)$9.30$18.4949.7%
HealthEquity (NasdaqGS:HQY)$90.40$179.1449.5%
Arrow Financial (NasdaqGS:AROW)$26.13$51.1949%
Verra Mobility (NasdaqCM:VRRM)$24.19$48.2149.8%
Vertex Pharmaceuticals (NasdaqGS:VRTX)$424.99$822.8248.3%
Mobileye Global (NasdaqGS:MBLY)$16.30$31.6448.5%
Nutanix (NasdaqGS:NTNX)$75.10$145.1348.3%
Pursuit Attractions and Hospitality (NYSE:PRSU)$28.92$57.1649.4%

Click here to see the full list of 172 stocks from our Undervalued US Stocks Based On Cash Flows screener.

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

Mobileye Global (NasdaqGS:MBLY)

Overview: Mobileye Global Inc. develops and deploys advanced driver assistance systems and autonomous driving technologies worldwide, with a market cap of approximately $13.24 billion.

Operations: The company's revenue primarily comes from its advanced driver assistance systems and autonomous driving technologies, totaling $1.81 billion.

Estimated Discount To Fair Value: 48.5%

Mobileye Global is trading at US$16.30, significantly below its estimated fair value of US$31.64, suggesting it might be undervalued based on cash flows. The company's revenue growth forecast of 16.8% annually outpaces the broader U.S. market's 8.4%. Despite recent executive resignations, strategic alliances like the one with Volkswagen for advanced driver assistance systems could bolster future prospects as Mobileye aims to become profitable within three years.

NasdaqGS:MBLY Discounted Cash Flow as at May 2025
NasdaqGS:MBLY Discounted Cash Flow as at May 2025

ON Semiconductor (NasdaqGS:ON)

Overview: ON Semiconductor Corporation offers intelligent sensing and power solutions globally, with a market cap of approximately $17.12 billion.

Operations: The company's revenue is derived from three main segments: Power Solutions Group ($3.12 billion), Intelligent Sensing Group ($1.07 billion), and Analog & Mixed-Signal Group ($2.48 billion).

Estimated Discount To Fair Value: 35.4%

ON Semiconductor, trading at US$40.98, is significantly below its estimated fair value of US$63.45, indicating potential undervaluation based on cash flows. Despite a recent net loss of US$486.1 million for Q1 2025 and declining profit margins compared to last year, the company forecasts substantial earnings growth of 33.8% annually over the next three years, outpacing the U.S. market's average growth rate and highlighting its strong future profit potential amidst slower revenue growth projections.

NasdaqGS:ON Discounted Cash Flow as at May 2025
NasdaqGS:ON Discounted Cash Flow as at May 2025

Renasant (NYSE:RNST)

Overview: Renasant Corporation is a bank holding company for Renasant Bank, offering financial, wealth management, fiduciary, and insurance services to retail and commercial clients, with a market cap of approximately $3.22 billion.

Operations: Renasant's revenue is primarily driven by its Community Banks segment, generating $708.08 million, complemented by $27.37 million from Wealth Management services.

Estimated Discount To Fair Value: 39.8%

Renasant, trading at US$33.9, is valued significantly below its estimated fair value of US$56.28, suggesting an undervaluation based on cash flows. With projected annual earnings growth of 32.41% and revenue growth of 23.7%, both surpassing U.S. market averages, the company shows strong future potential despite recent shareholder dilution and no share buybacks in Q1 2025. Leadership changes with Kevin D. Chapman as CEO may influence strategic direction positively.

NYSE:RNST Discounted Cash Flow as at May 2025
NYSE:RNST Discounted Cash Flow as at May 2025

Summing It All Up

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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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