As the U.S. markets reach record highs, with major indices like the Dow, S&P 500, and Nasdaq closing at unprecedented levels amid expectations of potential Federal Reserve interest rate cuts, investors are keenly observing opportunities that might be undervalued despite the bullish sentiment. In such a vibrant market environment, identifying stocks trading below their estimated values can offer strategic entry points for those looking to capitalize on potential growth while maintaining a balanced portfolio.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Peapack-Gladstone Financial (PGC) | $28.93 | $56.54 | 48.8% |
| Northwest Bancshares (NWBI) | $12.48 | $24.41 | 48.9% |
| Niagen Bioscience (NAGE) | $9.38 | $18.65 | 49.7% |
| NeuroPace (NPCE) | $9.97 | $19.87 | 49.8% |
| McGraw Hill (MH) | $14.76 | $28.77 | 48.7% |
| Investar Holding (ISTR) | $23.00 | $45.15 | 49.1% |
| Horizon Bancorp (HBNC) | $16.43 | $31.83 | 48.4% |
| Granite Ridge Resources (GRNT) | $5.19 | $9.93 | 47.7% |
| Duolingo (DUOL) | $273.49 | $544.91 | 49.8% |
| AGNC Investment (AGNC) | $10.35 | $20.41 | 49.3% |
We're going to check out a few of the best picks from our screener tool.
Zillow Group (ZG)
Overview: Zillow Group, Inc. operates real estate brands through mobile applications and websites in the United States, with a market cap of approximately $20.94 billion.
Operations: Zillow Group's revenue primarily comes from its Internet, Media & Technology (IMT) segment, excluding mortgages, which generated $2.39 billion.
Estimated Discount To Fair Value: 10.1%
Zillow Group's recent partnership with Berkshire Hathaway HomeServices enhances its digital presence, potentially boosting cash flows. The company reported US$641 million in second-quarter sales and a return to profitability with US$2 million net income, indicating improved financial health. Trading at approximately 10% below fair value based on discounted cash flow analysis, Zillow is forecasted to achieve above-average market profit growth over the next three years, supported by innovative product offerings like Zillow Showcase.
- Insights from our recent growth report point to a promising forecast for Zillow Group's business outlook.
- Unlock comprehensive insights into our analysis of Zillow Group stock in this financial health report.
PagerDuty (PD)
Overview: PagerDuty, Inc. operates a digital operations management platform serving both the United States and international markets, with a market cap of approximately $1.55 billion.
Operations: The company's revenue is primarily generated from its Software & Programming segment, which accounts for $483.61 million.
Estimated Discount To Fair Value: 38.5%
PagerDuty's recent earnings report shows a turnaround with US$9.78 million net income for the second quarter, compared to a loss last year, reflecting improved cash flow management. The stock is trading at 38.5% below its estimated fair value of US$27.08, suggesting it may be undervalued based on cash flows. With strategic leadership changes and potential M&A activity, PagerDuty is positioned for significant profitability growth over the next three years despite slower revenue expansion forecasts.
- Our growth report here indicates PagerDuty may be poised for an improving outlook.
- Navigate through the intricacies of PagerDuty with our comprehensive financial health report here.
SmartStop Self Storage REIT (SMA)
Overview: SmartStop Self Storage REIT, Inc. (NYSE:SMA) is a self-managed real estate investment trust with a team of over 600 professionals dedicated to expanding the SmartStop® Self Storage brand, and it has a market cap of approximately $1.44 billion.
Operations: SmartStop generates revenue primarily from its Self Storage segment, which accounts for $231.41 million, and its Managed REIT Platform, contributing $13.05 million.
Estimated Discount To Fair Value: 29.4%
SmartStop Self Storage REIT's recent acquisitions in New Jersey and Alberta expand its portfolio, enhancing cash flow prospects. Despite a net loss of US$4.6 million in Q2 2025, the stock trades at US$37.66, significantly below its estimated fair value of US$53.35, indicating potential undervaluation based on cash flows. However, dividend sustainability is questionable due to insufficient earnings coverage. The company's revenue growth forecast of 11.1% annually outpaces the broader market but remains below high-growth thresholds.
- Our expertly prepared growth report on SmartStop Self Storage REIT implies its future financial outlook may be stronger than recent results.
- Dive into the specifics of SmartStop Self Storage REIT here with our thorough financial health report.
Next Steps
- Investigate our full lineup of 194 Undervalued US Stocks Based On Cash Flows right here.
- Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
- Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
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 PagerDuty 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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