3 US Stocks That May Be Undervalued In February 2025

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As the U.S. stock market seeks to recover from last week's significant downturn, major indices like the Dow Jones, S&P 500, and Nasdaq are showing signs of a potential rebound. In this fluctuating environment, identifying undervalued stocks can be crucial for investors looking to capitalize on opportunities that align with current market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name

Current Price

Fair Value (Est)

Discount (Est)

Argan (NYSE:AGX)

$133.63

$264.49

49.5%

SouthState (NYSE:SSB)

$99.32

$193.86

48.8%

Atour Lifestyle Holdings (NasdaqGS:ATAT)

$31.26

$59.85

47.8%

Northwest Bancshares (NasdaqGS:NWBI)

$12.57

$24.55

48.8%

Old National Bancorp (NasdaqGS:ONB)

$23.46

$45.45

48.4%

KBR (NYSE:KBR)

$49.14

$94.97

48.3%

Cadre Holdings (NYSE:CDRE)

$33.58

$64.79

48.2%

Advanced Micro Devices (NasdaqGS:AMD)

$110.84

$214.13

48.2%

Haemonetics (NYSE:HAE)

$63.02

$122.24

48.4%

DoubleVerify Holdings (NYSE:DV)

$21.68

$41.76

48.1%

Click here to see the full list of 171 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Bloomin' Brands

Overview: Bloomin' Brands, Inc. owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally, with a market cap of approximately $1 billion.

Operations: The company's revenue segments include $3.95 billion from the United States and $600.16 million from international operations.

Estimated Discount To Fair Value: 36.1%

Bloomin' Brands, trading at US$11.84, is significantly undervalued with a fair value estimate of US$18.52, representing a 36.1% discount. Despite high debt levels and expected revenue decline of 2.7% annually over the next three years, the company is forecasted to achieve profitability within this period, with earnings projected to grow substantially by 75.93% annually. However, its attractive dividend yield of 8.11% is not well supported by current earnings or cash flows.

NasdaqGS:BLMN Discounted Cash Flow as at Feb 2025
NasdaqGS:BLMN Discounted Cash Flow as at Feb 2025

VSE

Overview: VSE Corporation is a diversified aftermarket products and services company operating in the United States, with a market cap of approximately $2.04 billion.

Operations: The company's revenue is derived from two primary segments: Fleet, contributing $303.88 million, and Aviation, generating $712.55 million.

Estimated Discount To Fair Value: 29.4%

VSE Corporation is trading at US$100.01, significantly undervalued with a fair value estimate of US$141.73, a 29.4% discount. Despite recent shareholder dilution and lower profit margins (3.3% from 4.8%), VSE's earnings are forecast to grow substantially by 47.1% annually, outpacing the US market's 14.3%. While interest payments aren't well covered by earnings, revenue growth is expected at 16.5%, surpassing the market average of 8.8%.

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