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Amid recent market volatility, with major indices like the Dow Jones and Nasdaq experiencing significant declines, investors are increasingly on the lookout for stocks that may be trading below their intrinsic value. In such turbulent times, identifying undervalued stocks can offer potential opportunities as these equities might not fully reflect their companies' fundamental strengths or future prospects.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| CareTrust REIT (NYSE:CTRE) | $27.41 | $54.76 | 49.9% |
| NBT Bancorp (NasdaqGS:NBTB) | $40.45 | $78.70 | 48.6% |
| Semrush Holdings (NYSE:SEMR) | $9.14 | $18.17 | 49.7% |
| First Reliance Bancshares (OTCPK:FSRL) | $9.35 | $18.55 | 49.6% |
| Vericel (NasdaqGM:VCEL) | $44.24 | $86.05 | 48.6% |
| Veracyte (NasdaqGM:VCYT) | $32.62 | $64.53 | 49.4% |
| Elastic (NYSE:ESTC) | $83.35 | $163.03 | 48.9% |
| Zillow Group (NasdaqGS:ZG) | $64.96 | $128.27 | 49.4% |
| BioLife Solutions (NasdaqCM:BLFS) | $22.79 | $44.51 | 48.8% |
| CNX Resources (NYSE:CNX) | $29.35 | $57.33 | 48.8% |
Here's a peek at a few of the choices from the screener.
Veracyte
Overview: Veracyte, Inc. is a diagnostics company operating in the United States and internationally, with a market cap of approximately $2.25 billion.
Operations: The company generates revenue from its diagnostic products, amounting to $445.76 million.
Estimated Discount To Fair Value: 49.4%
Veracyte, Inc. is trading significantly below its estimated fair value, with a price of US$32.62 against a fair value estimate of US$64.53, indicating potential undervaluation based on cash flows. The company has recently become profitable with net income reaching US$24.14 million in 2024 compared to a loss the previous year. Veracyte's innovative MRD testing platform shows promising clinical performance, potentially enhancing future revenue streams and supporting its growth trajectory in the oncology diagnostics market.
Bentley Systems
Overview: Bentley Systems, Incorporated develops and provides infrastructure engineering software solutions globally, with a market capitalization of approximately $12.20 billion.
Operations: The company's revenue is primarily derived from its Computer Software and Related Services segment, totaling $1.35 billion.
Estimated Discount To Fair Value: 10.2%
Bentley Systems is trading slightly below its estimated fair value of US$46.96, with a current price of US$42.15, suggesting some undervaluation based on cash flows. Recent earnings show revenue growth to US$1.35 billion in 2024, but net income declined to US$234.79 million from the previous year. The company completed a share buyback worth US$92.57 million and expects revenue growth to outpace the broader U.S. market in 2025 despite high debt levels.