In This Article:
In a dramatic turn of events, the United States stock market experienced significant gains as major indices soared following President Trump's announcement of a 90-day pause on tariffs. This volatility presents an opportunity for investors to explore stocks that may be trading below their intrinsic value, offering potential for growth amidst the current economic landscape.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| CareTrust REIT (NYSE:CTRE) | $27.41 | $54.76 | 49.9% |
| NBT Bancorp (NasdaqGS:NBTB) | $40.45 | $78.70 | 48.6% |
| Semrush Holdings (NYSE:SEMR) | $9.14 | $18.17 | 49.7% |
| First Reliance Bancshares (OTCPK:FSRL) | $9.35 | $18.55 | 49.6% |
| Vericel (NasdaqGM:VCEL) | $44.24 | $86.05 | 48.6% |
| Veracyte (NasdaqGM:VCYT) | $32.62 | $64.53 | 49.4% |
| Elastic (NYSE:ESTC) | $83.35 | $163.03 | 48.9% |
| Zillow Group (NasdaqGS:ZG) | $64.96 | $128.27 | 49.4% |
| BioLife Solutions (NasdaqCM:BLFS) | $22.79 | $44.51 | 48.8% |
| CNX Resources (NYSE:CNX) | $29.35 | $57.33 | 48.8% |
We'll examine a selection from our screener results.
Flutter Entertainment
Overview: Flutter Entertainment plc is a sports betting and gaming company with operations in the United States, the United Kingdom, Ireland, Australia, Italy, and internationally, and has a market cap of approximately $37.67 billion.
Operations: The company's revenue is derived from several segments: $5.80 billion from the US, $3.60 billion from the UK and Ireland, $1.40 billion from Australia, and $3.26 billion internationally.
Estimated Discount To Fair Value: 31.1%
Flutter Entertainment is trading at US$236.67, significantly below its estimated fair value of US$343.58, suggesting undervaluation based on discounted cash flow analysis. The company has recently become profitable with net income reaching US$43 million in 2024, compared to a loss the previous year. Earnings are forecast to grow substantially at 45.6% annually, outpacing the broader market's growth expectations and indicating strong future cash flow potential despite recent board changes and index adjustments.
Nu Holdings
Overview: Nu Holdings Ltd. operates a digital banking platform across several countries including Brazil, Mexico, and Colombia, with a market capitalization of approximately $48.04 billion.
Operations: The company's revenue from its digital banking operations is approximately $5.51 billion.