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As February 2025 comes to a close, the U.S. stock market has experienced a mixed performance with major indexes posting losses for the month despite a late surge fueled by easing inflation concerns. Amidst this volatile environment, identifying stocks that are potentially undervalued can offer opportunities for investors seeking value; such stocks might be trading below their intrinsic value due to market fluctuations or broader economic uncertainties.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| MINISO Group Holding (NYSE:MNSO) | $20.81 | $41.03 | 49.3% |
| Atour Lifestyle Holdings (NasdaqGS:ATAT) | $30.71 | $59.36 | 48.3% |
| Lantheus Holdings (NasdaqGM:LNTH) | $93.82 | $182.42 | 48.6% |
| Limbach Holdings (NasdaqCM:LMB) | $83.00 | $160.52 | 48.3% |
| Cadre Holdings (NYSE:CDRE) | $33.62 | $64.89 | 48.2% |
| JBT Marel (NYSE:JBTM) | $132.00 | $262.89 | 49.8% |
| Albemarle (NYSE:ALB) | $77.03 | $151.13 | 49% |
| Fluence Energy (NasdaqGS:FLNC) | $5.72 | $11.42 | 49.9% |
| Workiva (NYSE:WK) | $87.52 | $170.87 | 48.8% |
| Driven Brands Holdings (NasdaqGS:DRVN) | $17.53 | $34.71 | 49.5% |
Let's take a closer look at a couple of our picks from the screened companies.
DoorDash
Overview: DoorDash, Inc. operates a commerce platform that links merchants, consumers, and independent contractors both in the United States and internationally, with a market cap of approximately $83.36 billion.
Operations: The company's revenue segment is Internet Information Providers, generating $10.72 billion.
Estimated Discount To Fair Value: 40.5%
DoorDash's recent financial performance shows a transition to profitability with a net income of US$123 million in 2024, contrasting with the previous year's loss. The company is trading significantly below its estimated fair value of US$333.73, suggesting potential undervaluation based on cash flows. Despite large one-off items affecting results and insider selling, DoorDash's revenue growth outpaces the broader market, supported by strategic partnerships like those with The Home Depot and Ibotta.
Carvana
Overview: Carvana Co. operates an e-commerce platform for buying and selling used cars in the United States, with a market cap of $50.25 billion.
Operations: The company generates revenue primarily from its retail segment, specifically in the gasoline and auto dealers category, amounting to $13.67 billion.