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In the current U.S. market, the S&P 500 and Nasdaq have shown resilience, bouncing back from early losses as investors monitor trade negotiations and economic data. Amid this backdrop of cautious optimism, identifying undervalued stocks can provide opportunities for investors looking to capitalize on potential growth when these stocks are trading at significant discounts.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
Name | Current Price | Fair Value (Est) | Discount (Est) |
WesBanco (WSBC) | $31.70 | $63.09 | 49.8% |
Verra Mobility (VRRM) | $24.37 | $47.81 | 49% |
StoneCo (STNE) | $14.35 | $28.57 | 49.8% |
Roku (ROKU) | $80.48 | $160.52 | 49.9% |
Reddit (RDDT) | $115.03 | $229.38 | 49.9% |
Provident Financial Services (PFS) | $17.08 | $34.04 | 49.8% |
Lyft (LYFT) | $15.56 | $30.50 | 49% |
Ligand Pharmaceuticals (LGND) | $115.39 | $225.70 | 48.9% |
Brookline Bancorp (BRKL) | $10.60 | $20.86 | 49.2% |
Berkshire Hills Bancorp (BHLB) | $25.31 | $49.33 | 48.7% |
Below we spotlight a couple of our favorites from our exclusive screener.
Bloom Energy
Overview: Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation both in the United States and internationally, with a market cap of approximately $5.02 billion.
Operations: The company's revenue is primarily derived from its electric equipment segment, totaling $1.56 billion.
Estimated Discount To Fair Value: 13.6%
Bloom Energy is trading at US$22.53, below its estimated fair value of US$26.09, suggesting it may be undervalued based on cash flows. The company recently reported a significant revenue increase to US$326.02 million for Q1 2025 and reduced net losses compared to the previous year. Bloom's earnings are expected to grow significantly over the next three years, with revenue growth forecasted above the broader U.S. market despite high-quality earnings being impacted by large one-off items.
Fidelity National Information Services
Overview: Fidelity National Information Services, Inc. (FIS) is a global leader in financial technology solutions, providing software and services to banks and other financial institutions, with a market cap of approximately $42.61 billion.
Operations: The company's revenue is primarily derived from its Banking Solutions segment, which generated $6.93 billion, and its Capital Market Solutions segment, contributing $3.04 billion.