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As the U.S. stock market grapples with concerns over tariffs and economic uncertainties, major indices like the S&P 500 and Nasdaq have seen significant declines, erasing post-election gains. In such volatile times, identifying stocks that are trading below their intrinsic value can offer potential opportunities for investors seeking to navigate these challenging conditions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Brookline Bancorp (NasdaqGS:BRKL) | $11.02 | $21.98 | 49.9% |
| Dime Community Bancshares (NasdaqGS:DCOM) | $28.44 | $56.33 | 49.5% |
| Associated Banc-Corp (NYSE:ASB) | $22.64 | $44.89 | 49.6% |
| Gilead Sciences (NasdaqGS:GILD) | $117.41 | $230.37 | 49% |
| Similarweb (NYSE:SMWB) | $9.08 | $18.00 | 49.6% |
| Cadre Holdings (NYSE:CDRE) | $34.02 | $67.34 | 49.5% |
| Coastal Financial (NasdaqGS:CCB) | $82.99 | $162.87 | 49% |
| Albemarle (NYSE:ALB) | $75.51 | $150.98 | 50% |
| JBT Marel (NYSE:JBTM) | $132.93 | $260.64 | 49% |
| Workiva (NYSE:WK) | $85.87 | $168.65 | 49.1% |
Let's take a closer look at a couple of our picks from the screened companies.
Synopsys
Overview: Synopsys, Inc. develops electronic design automation software for designing and testing integrated circuits, with a market cap of approximately $69.72 billion.
Operations: The company's revenue segments include Design IP, generating $1.82 billion, and Design Automation, contributing $4.26 billion.
Estimated Discount To Fair Value: 14.7%
Synopsys is trading at US$450.88, below its estimated fair value of US$528.7, suggesting it may be undervalued based on cash flows. Recent innovations like the Synopsys Virtualizer Native Execution enhance software development efficiency for edge devices, potentially boosting future cash flows. The company completed significant fixed-income offerings totaling over US$8 billion, which could support strategic growth initiatives and improve financial flexibility despite a recent dip in quarterly earnings compared to last year.
Zillow Group
Overview: Zillow Group, Inc. operates real estate brands through mobile applications and websites in the United States, with a market cap of approximately $18.22 billion.
Operations: The company's revenue primarily comes from its Internet, Media & Technology (IMT) segment, excluding mortgages, which generated $2.24 billion.
Estimated Discount To Fair Value: 39%