In This Article:
As the U.S. stock market grapples with mixed investor sentiment due to ongoing tariff discussions and fluctuating economic data, major indices like the Dow Jones, S&P 500, and Nasdaq Composite have shown varied performances. In this environment of uncertainty, identifying undervalued stocks can be a strategic move for investors seeking potential opportunities amidst broader market volatility.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Provident Financial Services (NYSE:PFS) | $17.76 | $34.77 | 48.9% |
| MINISO Group Holding (NYSE:MNSO) | $20.29 | $40.47 | 49.9% |
| Brookline Bancorp (NasdaqGS:BRKL) | $11.18 | $22.02 | 49.2% |
| Berkshire Hills Bancorp (NYSE:BHLB) | $26.97 | $53.19 | 49.3% |
| Pure Storage (NYSE:PSTG) | $50.11 | $99.37 | 49.6% |
| Archrock (NYSE:AROC) | $25.11 | $49.33 | 49.1% |
| Five9 (NasdaqGM:FIVN) | $33.35 | $65.87 | 49.4% |
| JBT Marel (NYSE:JBTM) | $131.88 | $259.85 | 49.2% |
| Nutanix (NasdaqGS:NTNX) | $77.08 | $153.67 | 49.8% |
| Mobileye Global (NasdaqGS:MBLY) | $14.39 | $28.77 | 50% |
Let's explore several standout options from the results in the screener.
Kanzhun
Overview: Kanzhun Limited, with a market cap of $6.77 billion, operates in the People's Republic of China by offering online recruitment services through its subsidiaries.
Operations: Kanzhun Limited generates revenue of CN¥7.11 billion from its internet information provider services in China.
Estimated Discount To Fair Value: 35.1%
Kanzhun, trading at US$16.11, is undervalued based on discounted cash flow estimates with a fair value of US$24.82. Earnings grew by 151.4% over the past year and are expected to grow 25.2% annually, outpacing the US market's forecast of 14%. Revenue for Q3 2024 rose to CNY 1,911.58 million from CNY 1,606.64 million a year ago, while net income increased to CNY 468.37 million from CNY 425.72 million.
Datadog
Overview: Datadog, Inc. operates an observability and security platform for cloud applications globally, with a market cap of approximately $38.79 billion.
Operations: The company's revenue primarily comes from its IT Infrastructure segment, which generated $2.68 billion.
Estimated Discount To Fair Value: 44.4%
Datadog, priced at US$115.46, is trading significantly below its estimated fair value of US$207.51, suggesting it may be undervalued based on cash flows. The company's revenue for 2024 was US$2.68 billion, up from US$2.13 billion the previous year, with net income rising to US$183.75 million from US$48.57 million. Analysts expect earnings growth to outpace the market at 19.6% annually and revenue to grow faster than the broader U.S market rate of 8.5%.