In This Article:
As the U.S. stock market edges close to record highs, buoyed by positive wholesale inflation data and a stable tariff environment, investors are increasingly on the lookout for opportunities that may be trading below their intrinsic value. In this context, identifying undervalued stocks becomes crucial as these investments can offer potential upside in a market where major indices have recently posted weekly gains.
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) | $18.65 | $36.99 | 49.6% |
| Atour Lifestyle Holdings (NasdaqGS:ATAT) | $30.80 | $58.90 | 47.7% |
| Old National Bancorp (NasdaqGS:ONB) | $23.89 | $45.71 | 47.7% |
| Sandy Spring Bancorp (NasdaqGS:SASR) | $33.65 | $64.49 | 47.8% |
| Incyte (NasdaqGS:INCY) | $70.42 | $134.89 | 47.8% |
| Array Technologies (NasdaqGM:ARRY) | $6.79 | $13.53 | 49.8% |
| Constellium (NYSE:CSTM) | $9.34 | $18.31 | 49% |
| First Advantage (NasdaqGS:FA) | $19.93 | $38.12 | 47.7% |
| Fluence Energy (NasdaqGS:FLNC) | $6.43 | $12.61 | 49% |
| Kyndryl Holdings (NYSE:KD) | $41.79 | $82.10 | 49.1% |
Let's review some notable picks from our screened stocks.
Duolingo
Overview: Duolingo, Inc. is a mobile learning platform that operates in the United States, the United Kingdom, and internationally with a market cap of $19.03 billion.
Operations: The company generates revenue of $689.46 million from its educational software segment.
Estimated Discount To Fair Value: 14.6%
Duolingo is trading at US$432.69, approximately 14.6% below its estimated fair value of US$506.64, indicating potential undervaluation based on cash flows. The company's earnings are expected to grow significantly at 35.5% annually over the next three years, outpacing the broader U.S. market's growth rate of 14.5%. Recent product enhancements and a strategic board appointment bolster Duolingo's innovative edge and leadership capabilities in the education technology sector.
Incyte
Overview: Incyte Corporation is a biopharmaceutical company focused on the discovery, development, and commercialization of therapeutics across the United States, Europe, Canada, and Japan with a market cap of approximately $13.63 billion.
Operations: The company generates revenue primarily from its biotechnology segment, amounting to approximately $4.24 billion.
Estimated Discount To Fair Value: 47.8%