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As of February 2025, the U.S. stock market has experienced a mixed performance with recent declines following record highs for major indices like the S&P 500. This fluctuation presents an opportunity to explore stocks that may be trading below their estimated value, particularly in a market environment where identifying companies with strong fundamentals and potential for growth can be key to making informed investment decisions.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| German American Bancorp (NasdaqGS:GABC) | $39.82 | $74.94 | 46.9% |
| Northwest Bancshares (NasdaqGS:NWBI) | $12.65 | $24.45 | 48.3% |
| Old National Bancorp (NasdaqGS:ONB) | $23.97 | $45.88 | 47.8% |
| Sandy Spring Bancorp (NasdaqGS:SASR) | $32.99 | $64.53 | 48.9% |
| Solaris Energy Infrastructure (NYSE:SEI) | $29.34 | $57.34 | 48.8% |
| Incyte (NasdaqGS:INCY) | $71.38 | $135.08 | 47.2% |
| Limbach Holdings (NasdaqCM:LMB) | $83.35 | $160.26 | 48% |
| Array Technologies (NasdaqGM:ARRY) | $6.90 | $13.50 | 48.9% |
| Open Lending (NasdaqGM:LPRO) | $5.44 | $10.49 | 48.2% |
| Haemonetics (NYSE:HAE) | $63.45 | $121.99 | 48% |
Here we highlight a subset of our preferred stocks from the screener.
Light & Wonder
Overview: Light & Wonder, Inc. is a cross-platform games company operating in the United States and internationally, with a market cap of $9.01 billion.
Operations: The company's revenue segments consist of Gaming at $2.05 billion, Igaming at $293 million, and Sciplay at $821 million.
Estimated Discount To Fair Value: 25.1%
Light & Wonder is trading at US$104.89, below its estimated fair value of US$140.05, indicating it is undervalued based on cash flows. Despite lower-than-market revenue growth forecasts, earnings are expected to grow 20.6% annually over the next three years, outpacing the US market's 14.5%. However, interest payments are not well covered by earnings and large one-off items impact financial results. Recent leadership changes may influence future product innovation and strategy alignment.
BeiGene
Overview: BeiGene, Ltd. is an oncology company focused on discovering and developing cancer treatments globally, with a market cap of approximately $25.26 billion.
Operations: The company generates revenue from its pharmaceutical products segment, amounting to CN¥23.51 billion.