As the U.S. equities market grapples with a rebound from a recent sell-off, major indices like the Dow Jones and S&P 500 are showing mixed performances amid ongoing economic and political uncertainties. In this fluctuating environment, identifying undervalued stocks can offer opportunities for investors seeking value, particularly as they navigate through periods of volatility and uncertainty in the market.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Eagle Financial Services (NasdaqCM:EFSI) | $32.59 | $63.93 | 49% |
| MINISO Group Holding (NYSE:MNSO) | $20.69 | $41.07 | 49.6% |
| Atour Lifestyle Holdings (NasdaqGS:ATAT) | $31.25 | $61.43 | 49.1% |
| Semrush Holdings (NYSE:SEMR) | $9.70 | $19.02 | 49% |
| Berkshire Hills Bancorp (NYSE:BHLB) | $26.28 | $51.75 | 49.2% |
| Valley National Bancorp (NasdaqGS:VLY) | $8.80 | $17.20 | 48.8% |
| Pure Storage (NYSE:PSTG) | $50.92 | $99.56 | 48.9% |
| Brunswick (NYSE:BC) | $57.71 | $114.92 | 49.8% |
| Viking Holdings (NYSE:VIK) | $40.41 | $78.95 | 48.8% |
| OPAL Fuels (NasdaqCM:OPAL) | $1.89 | $3.75 | 49.6% |
Let's dive into some prime choices out of the screener.
Autodesk (NasdaqGS:ADSK)
Overview: Autodesk, Inc. offers 3D design, engineering, and entertainment technology solutions globally with a market cap of approximately $54.19 billion.
Operations: The company generates revenue primarily from its CAD/CAM software segment, which amounts to $6.13 billion.
Estimated Discount To Fair Value: 28.6%
Autodesk's stock is trading at US$254.43, significantly below its estimated fair value of US$356.21, indicating potential undervaluation based on cash flows. Earnings are forecast to grow 14.4% annually, outpacing the broader US market growth rate of 13.9%. Recent buybacks totaling US$1.12 billion highlight strong capital management, while ongoing M&A pursuits may enhance strategic positioning. Revenue growth is expected to surpass the market average, supporting long-term value creation prospects for investors.
- Upon reviewing our latest growth report, Autodesk's projected financial performance appears quite optimistic.
- Click here and access our complete balance sheet health report to understand the dynamics of Autodesk.
Grab Holdings (NasdaqGS:GRAB)
Overview: Grab Holdings Limited operates as a superapp provider across Southeast Asia, offering a range of services in countries like Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam with a market cap of approximately $17.91 billion.
Operations: The company's revenue is primarily derived from its Mobility segment at $1.05 billion, Deliveries segment at $1.49 billion, and Financial Services segment at $253 million.
Estimated Discount To Fair Value: 25.3%
Grab Holdings' stock is priced at US$4.40, below its fair value estimate of US$5.89, suggesting undervaluation based on cash flows. The company anticipates revenue growth of 14% annually, surpassing the broader US market's 8.5%. Recent earnings improvements and reduced net losses from US$434 million to US$105 million reflect positive momentum. Ongoing merger discussions with GoTo could influence future valuations, while a recent shelf registration filing for $845 million indicates potential capital initiatives.
- Our growth report here indicates Grab Holdings may be poised for an improving outlook.
- Click to explore a detailed breakdown of our findings in Grab Holdings' balance sheet health report.
Howmet Aerospace (NYSE:HWM)
Overview: Howmet Aerospace Inc. offers advanced engineered solutions for the aerospace and transportation sectors globally, with a market cap of approximately $51.24 billion.
Operations: The company's revenue segments consist of Engine Products at $3.74 billion, Fastening Systems at $1.58 billion, Forged Wheels at $1.05 billion, and Engineered Structures at $1.08 billion.
Estimated Discount To Fair Value: 32.2%
Howmet Aerospace's stock, priced at US$126.51, is trading significantly below its estimated fair value of US$186.70, highlighting potential undervaluation based on cash flows. The company reported a substantial increase in net income to US$314 million for Q4 2024 and expects continued revenue growth in 2025. Despite high debt levels, earnings are forecasted to grow at 15.5% annually, outpacing the broader US market's growth rate of 13.9%.
- The growth report we've compiled suggests that Howmet Aerospace's future prospects could be on the up.
- Take a closer look at Howmet Aerospace's balance sheet health here in our report.
Summing It All Up
- Reveal the 193 hidden gems among our Undervalued US Stocks Based On Cash Flows screener with a single click here.
- Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
- Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.
Curious About Other Options?
- 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.
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