Stock Analysis

March 2025's Noteworthy Stocks Estimated Below Intrinsic Value

NYSE:ESTC
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As February 2025 comes to a close, the U.S. stock market has experienced a mixed performance with major indexes posting losses for the month despite a late surge fueled by easing inflation concerns. Amidst this volatile environment, identifying stocks that are potentially undervalued can offer opportunities for investors seeking value; such stocks might be trading below their intrinsic value due to market fluctuations or broader economic uncertainties.

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

NameCurrent PriceFair Value (Est)Discount (Est)
MINISO Group Holding (NYSE:MNSO)$20.81$41.0349.3%
Atour Lifestyle Holdings (NasdaqGS:ATAT)$30.71$59.3648.3%
Lantheus Holdings (NasdaqGM:LNTH)$93.82$182.4248.6%
Limbach Holdings (NasdaqCM:LMB)$83.00$160.5248.3%
Cadre Holdings (NYSE:CDRE)$33.62$64.8948.2%
JBT Marel (NYSE:JBTM)$132.00$262.8949.8%
Albemarle (NYSE:ALB)$77.03$151.1349%
Fluence Energy (NasdaqGS:FLNC)$5.72$11.4249.9%
Workiva (NYSE:WK)$87.52$170.8748.8%
Driven Brands Holdings (NasdaqGS:DRVN)$17.53$34.7149.5%

Click here to see the full list of 199 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

DoorDash (NasdaqGS:DASH)

Overview: DoorDash, Inc. operates a commerce platform that links merchants, consumers, and independent contractors both in the United States and internationally, with a market cap of approximately $83.36 billion.

Operations: The company's revenue segment is Internet Information Providers, generating $10.72 billion.

Estimated Discount To Fair Value: 40.5%

DoorDash's recent financial performance shows a transition to profitability with a net income of US$123 million in 2024, contrasting with the previous year's loss. The company is trading significantly below its estimated fair value of US$333.73, suggesting potential undervaluation based on cash flows. Despite large one-off items affecting results and insider selling, DoorDash's revenue growth outpaces the broader market, supported by strategic partnerships like those with The Home Depot and Ibotta.

NasdaqGS:DASH Discounted Cash Flow as at Mar 2025
NasdaqGS:DASH Discounted Cash Flow as at Mar 2025

Carvana (NYSE:CVNA)

Overview: Carvana Co. operates an e-commerce platform for buying and selling used cars in the United States, with a market cap of $50.25 billion.

Operations: The company generates revenue primarily from its retail segment, specifically in the gasoline and auto dealers category, amounting to $13.67 billion.

Estimated Discount To Fair Value: 40.8%

Carvana's recent earnings report highlights a shift from a net loss to a net income of US$79 million in Q4 2024, with revenue climbing to US$3.55 billion from US$2.42 billion year-on-year. Trading at 40.8% below its estimated fair value of US$393.87, Carvana appears undervalued based on cash flows despite insider selling and interest coverage concerns. Revenue growth is projected at 17.9% annually, surpassing the broader market's pace, while earnings are expected to grow significantly over the next three years.

NYSE:CVNA Discounted Cash Flow as at Mar 2025
NYSE:CVNA Discounted Cash Flow as at Mar 2025

Elastic (NYSE:ESTC)

Overview: Elastic N.V. is a search AI company offering hosted and managed solutions for hybrid, public, private, and multi-cloud environments globally, with a market cap of approximately $12.15 billion.

Operations: The company's revenue segment is primarily derived from Software & Programming, accounting for $1.43 billion.

Estimated Discount To Fair Value: 33.3%

Elastic's recent earnings report shows a net loss of US$17.06 million for Q3 2025, despite revenue growth to US$382.08 million from US$327.96 million year-on-year. The stock trades at 33.3% below its estimated fair value of US$174.42, suggesting potential undervaluation based on discounted cash flow analysis, although insider selling raises concerns. Elastic's forecasted annual profit growth is robust, and revenue is expected to grow faster than the overall U.S. market rate over the next three years.

NYSE:ESTC Discounted Cash Flow as at Mar 2025
NYSE:ESTC Discounted Cash Flow as at Mar 2025

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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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About NYSE:ESTC

Elastic

A search artificial intelligence (AI) company, delivers hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments in the United States and internationally.

Excellent balance sheet with reasonable growth potential.