US Stocks Estimated Below Fair Value In February 2025

The U.S. stock market is experiencing heightened volatility as new tariffs on Canada, Mexico, and China are set to take effect, causing major indices like the Dow Jones, S&P 500, and Nasdaq to open lower. In such uncertain times, identifying stocks that are potentially undervalued can offer investors opportunities for strategic positioning within their portfolios.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Brookline Bancorp (NasdaqGS:BRKL)	$12.23	$24.03	49.1%
AGNC Investment (NasdaqGS:AGNC)	$9.97	$19.70	49.4%
Midland States Bancorp (NasdaqGS:MSBI)	$19.26	$37.86	49.1%
Array Technologies (NasdaqGM:ARRY)	$7.33	$14.52	49.5%
Privia Health Group (NasdaqGS:PRVA)	$22.85	$44.59	48.8%
Bilibili (NasdaqGS:BILI)	$16.72	$33.01	49.3%
Verra Mobility (NasdaqCM:VRRM)	$26.39	$51.88	49.1%
Similarweb (NYSE:SMWB)	$16.21	$31.79	49%
BeiGene (NasdaqGS:ONC)	$224.99	$439.70	48.8%
Gold Royalty (NYSEAM:GROY)	$1.32	$2.63	49.9%

Click here to see the full list of 178 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Five9 (NasdaqGM:FIVN)

Overview: Five9, Inc. provides intelligent cloud software for contact centers globally and has a market cap of approximately $3.08 billion.

Operations: The company generates revenue from its Internet Software & Services segment, amounting to $1.00 billion.

Estimated Discount To Fair Value: 41.6%

Five9 is trading at US$40.99, significantly below its estimated fair value of US$70.2, suggesting it may be undervalued based on discounted cash flow analysis. The company is forecast to achieve profitability within three years with earnings growing 54% annually, outpacing market expectations. Despite recent insider selling and legal challenges over alleged misrepresentations, Five9's strategic partnerships and innovative product developments with Microsoft and ServiceNow could bolster future growth prospects.

• Our growth report here indicates Five9 may be poised for an improving outlook.
• Navigate through the intricacies of Five9 with our comprehensive financial health report here.

Ultra Clean Holdings (NasdaqGS:UCTT)

Overview: Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components, parts, and ultra-high purity cleaning and analytical services for the semiconductor industry globally, with a market cap of approximately $1.66 billion.

Operations: The company's revenue is comprised of $1.74 billion from products and $239.20 million from services, catering to the semiconductor industry globally.

Estimated Discount To Fair Value: 13%

Ultra Clean Holdings is trading at US$36.87, below its estimated fair value of US$42.4, indicating potential undervaluation based on cash flows. Earnings are projected to grow significantly at 41.6% annually, surpassing market growth rates, while revenue growth is expected to outpace the broader U.S. market slightly. Recent board addition of Joanne Solomon brings extensive financial expertise that could enhance strategic direction despite low forecasted return on equity and impacts from large one-off items in financial results.

• In light of our recent growth report, it seems possible that Ultra Clean Holdings' financial performance will exceed current levels.
• Get an in-depth perspective on Ultra Clean Holdings' balance sheet by reading our health report here.

Antero Resources (NYSE:AR)

Overview: Antero Resources Corporation is an independent oil and natural gas company focused on the development, production, exploration, and acquisition of natural gas, NGLs, and oil properties in the United States with a market cap of approximately $11.61 billion.

Operations: The company's revenue is primarily derived from its exploration and production activities, totaling $4.27 billion, along with contributions from marketing at $195.83 million and an equity method investment in Antero Midstream Corporation amounting to $1.08 billion.

Estimated Discount To Fair Value: 41.3%

Antero Resources is trading at US$37.32, significantly below its estimated fair value of US$63.63, highlighting potential undervaluation based on cash flows. Revenue is projected to grow at 14.2% annually, outpacing the broader U.S. market's growth rate, while earnings are expected to increase substantially by 56.1% per year over the next three years. However, return on equity remains modest and profit margins have decreased from last year’s levels.

• Insights from our recent growth report point to a promising forecast for Antero Resources' business outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of Antero Resources.

Next Steps

• Click here to access our complete index of 178 Undervalued US Stocks Based On Cash Flows.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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.

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