Over the last 7 days, the United States market has risen by 2.0%, contributing to a 12% climb over the past year, with earnings forecasted to grow by 14% annually. In this context of robust growth, identifying undervalued stocks can be an effective strategy for investors seeking opportunities where estimated value gaps may offer potential for appreciation.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Mid Penn Bancorp (NasdaqGM:MPB) | $26.26 | $52.26 | 49.8% |
| Horizon Bancorp (NasdaqGS:HBNC) | $14.80 | $29.53 | 49.9% |
| Central Pacific Financial (NYSE:CPF) | $26.14 | $51.99 | 49.7% |
| Peoples Financial Services (NasdaqGS:PFIS) | $47.66 | $93.66 | 49.1% |
| Excelerate Energy (NYSE:EE) | $28.82 | $57.35 | 49.7% |
| e.l.f. Beauty (NYSE:ELF) | $113.77 | $225.34 | 49.5% |
| Lincoln Educational Services (NasdaqGS:LINC) | $23.08 | $45.81 | 49.6% |
| Pagaya Technologies (NasdaqCM:PGY) | $16.72 | $33.10 | 49.5% |
| Lyft (NasdaqGS:LYFT) | $15.27 | $30.29 | 49.6% |
| Clearfield (NasdaqGM:CLFD) | $37.91 | $74.94 | 49.4% |
Let's uncover some gems from our specialized screener.
Palo Alto Networks (NasdaqGS:PANW)
Overview: Palo Alto Networks, Inc. offers cybersecurity solutions globally and has a market cap of approximately $128.31 billion.
Operations: The company generates revenue from its Security Software & Services segment, amounting to $8.87 billion.
Estimated Discount To Fair Value: 17.6%
Palo Alto Networks is trading at US$194.86, below its estimated fair value of US$236.58, suggesting it may be undervalued based on cash flows. Despite recent revenue growth to US$2.29 billion for Q3 2025, net income declined from the previous year. Earnings are projected to grow annually by 18.4%, outpacing the market's 14.4% forecast, while strategic partnerships and product innovations continue enhancing its security offerings in AI and 5G sectors.
- Upon reviewing our latest growth report, Palo Alto Networks' projected financial performance appears quite optimistic.
- Take a closer look at Palo Alto Networks' balance sheet health here in our report.
Capital One Financial (NYSE:COF)
Overview: Capital One Financial Corporation is a financial services holding company that offers a range of financial products and services in the United States, Canada, and the United Kingdom, with a market cap of approximately $72.47 billion.
Operations: Capital One Financial Corporation's revenue segments include Credit Card services generating $18.64 billion, Consumer Banking contributing $7.36 billion, and Commercial Banking adding $3.45 billion.
Estimated Discount To Fair Value: 22.5%
Capital One Financial, priced at US$191.46, trades below its estimated fair value of US$246.95, indicating potential undervaluation based on cash flows. Forecasts show robust earnings growth of 28.74% annually and revenue expansion at 23.1%, surpassing market averages. Recent developments include a $3.59 billion shelf registration and ongoing share buybacks totaling $1.11 billion since April 2022, alongside consistent dividend payments, highlighting strong capital management despite low forecasted return on equity of 12.3%.
- Our earnings growth report unveils the potential for significant increases in Capital One Financial's future results.
- Click here and access our complete balance sheet health report to understand the dynamics of Capital One Financial.
e.l.f. Beauty (NYSE:ELF)
Overview: e.l.f. Beauty, Inc., along with its subsidiaries, operates globally in the cosmetics and skin care industry with a market cap of approximately $6.34 billion.
Operations: The company's revenue primarily comes from its personal products segment, which generated $1.31 billion.
Estimated Discount To Fair Value: 49.5%
e.l.f. Beauty, trading at US$113.77, is significantly undervalued with a fair value estimate of US$225.34, based on discounted cash flow analysis. Despite recent insider selling and volatile share prices, the company shows solid revenue growth forecasts of 12.2% annually and earnings growth of 16.5%, outpacing market averages. Recent financial results highlight increased sales but decreased net income year-over-year amid international expansion efforts in Europe and strategic credit facility enhancements for future growth initiatives.
- The analysis detailed in our e.l.f. Beauty growth report hints at robust future financial performance.
- Get an in-depth perspective on e.l.f. Beauty's balance sheet by reading our health report here.
Where To Now?
- Access the full spectrum of 165 Undervalued US Stocks Based On Cash Flows by clicking on this link.
- Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Contemplating Other Strategies?
- 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 Capital One Financial 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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