As the U.S. stock market experiences volatility amid geopolitical tensions and awaits the Federal Reserve's interest rate decision, investors are keenly observing shifts in major indices like the Dow Jones Industrial Average and S&P 500. In such an environment, identifying stocks that are trading below their intrinsic value can provide opportunities for those seeking potential gains while navigating uncertain market conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Verra Mobility (VRRM) | $23.99 | $47.92 | 49.9% |
| Shoals Technologies Group (SHLS) | $5.26 | $10.39 | 49.4% |
| Roku (ROKU) | $80.63 | $160.58 | 49.8% |
| Riverview Bancorp (RVSB) | $5.33 | $10.47 | 49.1% |
| Mid Penn Bancorp (MPB) | $26.41 | $52.26 | 49.5% |
| MetroCity Bankshares (MCBS) | $26.84 | $52.85 | 49.2% |
| Lincoln Educational Services (LINC) | $22.56 | $44.39 | 49.2% |
| German American Bancorp (GABC) | $36.86 | $72.97 | 49.5% |
| First Reliance Bancshares (FSRL) | $9.07 | $17.83 | 49.1% |
| Arrow Financial (AROW) | $24.88 | $49.74 | 50% |
We'll examine a selection from our screener results.
Palomar Holdings (PLMR)
Overview: Palomar Holdings, Inc. is a specialty insurance company offering property and casualty insurance to individuals and businesses in the United States, with a market cap of approximately $4.34 billion.
Operations: Palomar Holdings generates revenue primarily from its Earthquake, Wind, and Flood Insurance Products, totaling $609.96 million.
Estimated Discount To Fair Value: 26.1%
Palomar Holdings is trading at US$159.4, significantly below its estimated fair value of US$215.6, suggesting it may be undervalued based on cash flows. Recent earnings reports show net income rose to US$42.92 million from US$26.38 million year-over-year, with earnings per share also increasing substantially. Despite some insider selling recently, the company's revenue and earnings are forecasted to grow significantly faster than the overall U.S. market over the next three years.
- Our earnings growth report unveils the potential for significant increases in Palomar Holdings' future results.
- Click to explore a detailed breakdown of our findings in Palomar Holdings' balance sheet health report.
Tenable Holdings (TENB)
Overview: Tenable Holdings, Inc. offers cyber exposure management solutions across various regions including the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan with a market cap of $3.95 billion.
Operations: The company's revenue primarily comes from its Security Software & Services segment, totaling $923.20 million.
Estimated Discount To Fair Value: 43.8%
Tenable Holdings is trading at US$32.83, well below its estimated fair value of US$58.46, highlighting potential undervaluation based on cash flows. Despite a net loss increase to US$22.94 million in Q1 2025, revenue grew from the previous year, and earnings are projected to grow significantly annually over the next three years. Recent leadership changes and strategic acquisitions could enhance product offerings and market positioning as profitability is anticipated within three years.
- In light of our recent growth report, it seems possible that Tenable Holdings' financial performance will exceed current levels.
- Get an in-depth perspective on Tenable Holdings' balance sheet by reading our health report here.
CareTrust REIT (CTRE)
Overview: CareTrust REIT is a self-administered, publicly-traded real estate investment trust focused on owning, acquiring, developing, and leasing seniors housing and healthcare-related properties, with a market cap of approximately $5.39 billion.
Operations: The company's revenue is primarily derived from investments in healthcare-related real estate assets, totaling $329.84 million.
Estimated Discount To Fair Value: 46.8%
CareTrust REIT is trading at US$29.16, significantly below its estimated fair value of US$54.8, indicating potential undervaluation based on cash flows. Earnings grew by 157.1% last year and are forecast to grow 26.1% annually, outpacing the US market's growth rate. Recent strategic acquisitions in California and a new $500 million term loan bolster expansion efforts but shareholder dilution and a dividend not fully covered by earnings present concerns for investors seeking sustainable returns.
- The growth report we've compiled suggests that CareTrust REIT's future prospects could be on the up.
- Unlock comprehensive insights into our analysis of CareTrust REIT stock in this financial health report.
Turning Ideas Into Actions
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Seeking Other Investments?
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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.
Valuation is complex, but we're here to simplify it.
Discover if CareTrust REIT 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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