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As the U.S. stock market navigates mixed performances, with the S&P 500 and Nasdaq extending their winning streaks amid encouraging economic data, investors are keenly assessing opportunities in undervalued stocks. In this environment, identifying stocks that are estimated to be trading below their intrinsic worth can offer potential value plays for those looking to capitalize on market inefficiencies.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Berkshire Hills Bancorp (NYSE:BHLB) | $26.56 | $51.80 | 48.7% |
| Valley National Bancorp (NasdaqGS:VLY) | $9.17 | $18.22 | 49.7% |
| KBR (NYSE:KBR) | $55.66 | $108.48 | 48.7% |
| Horizon Bancorp (NasdaqGS:HBNC) | $15.77 | $30.71 | 48.7% |
| Insteel Industries (NYSE:IIIN) | $37.01 | $72.18 | 48.7% |
| Bel Fuse (NasdaqGS:BELF.A) | $71.85 | $143.21 | 49.8% |
| Shoals Technologies Group (NasdaqGM:SHLS) | $6.11 | $11.89 | 48.6% |
| FinWise Bancorp (NasdaqGM:FINW) | $14.84 | $29.22 | 49.2% |
| Vertex Pharmaceuticals (NasdaqGS:VRTX) | $421.16 | $823.12 | 48.8% |
| Clearfield (NasdaqGM:CLFD) | $37.47 | $74.54 | 49.7% |
Here's a peek at a few of the choices from the screener.
Datadog
Overview: Datadog, Inc. provides an observability and security platform for cloud applications globally, with a market cap of approximately $40.51 billion.
Operations: The company generates revenue primarily from its IT Infrastructure segment, amounting to $2.83 billion.
Estimated Discount To Fair Value: 32.2%
Datadog is trading at US$119.09, significantly below its estimated fair value of US$175.69, suggesting it may be undervalued based on cash flows. Despite a decline in net income for Q1 2025, revenue increased to US$761.55 million from the previous year. The company's earnings are forecasted to grow significantly at 24% annually, outpacing the broader U.S. market's growth expectations while maintaining a robust partnership with Chainguard for enhanced security solutions.
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Our growth report here indicates Datadog may be poised for an improving outlook.
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Click here to discover the nuances of Datadog with our detailed financial health report.
Workday
Overview: Workday, Inc. offers enterprise cloud applications globally and has a market cap of approximately $72.23 billion.
Operations: The company generates revenue from its cloud applications segment, which amounts to $8.45 billion.
Estimated Discount To Fair Value: 26.7%
Workday, Inc. is currently trading at US$271.17, below its estimated fair value of US$369.83, indicating potential undervaluation based on cash flows. Revenue growth is expected to outpace the broader U.S. market at 11.5% annually, while earnings are projected to grow significantly at 27.2% per year. Recent strategic expansions and partnerships in AI and data integration enhance its service offerings, potentially improving operational efficiencies and financial performance despite a recent decline in profit margins.