In This Article:
The United States market has experienced a notable upswing, rising 4.5% over the last week and showing an 11% increase over the past year, with earnings projected to grow by 14% annually. In such a climate, identifying stocks that are estimated to be below their intrinsic worth can present valuable opportunities for investors seeking to capitalize on potential growth while maintaining a focus on value.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Provident Financial Services (NYSE:PFS) | $17.86 | $35.51 | 49.7% |
| Quaker Chemical (NYSE:KWR) | $106.23 | $211.15 | 49.7% |
| Brookline Bancorp (NasdaqGS:BRKL) | $11.11 | $22.22 | 50% |
| Valley National Bancorp (NasdaqGS:VLY) | $9.16 | $18.18 | 49.6% |
| Flowco Holdings (NYSE:FLOC) | $19.38 | $37.99 | 49% |
| First Reliance Bancshares (OTCPK:FSRL) | $9.35 | $18.49 | 49.4% |
| Insteel Industries (NYSE:IIIN) | $36.81 | $72.27 | 49.1% |
| Bel Fuse (NasdaqGS:BELF.A) | $71.89 | $142.60 | 49.6% |
| Carvana (NYSE:CVNA) | $297.40 | $586.29 | 49.3% |
| Mobileye Global (NasdaqGS:MBLY) | $15.94 | $31.09 | 48.7% |
We'll examine a selection from our screener results.
DLocal
Overview: DLocal Limited operates a global payment processing platform and has a market capitalization of approximately $2.91 billion.
Operations: The company's revenue segments are not specified in the provided text.
Estimated Discount To Fair Value: 10.4%
DLocal's recent earnings report shows strong financial performance with Q1 2025 net income rising to US$46.63 million from US$17.71 million a year ago, reflecting significant growth in profitability. The stock trades at approximately 10% below its estimated fair value of US$12.55, suggesting some undervaluation based on cash flows. Despite past volatility and large one-off items impacting results, DLocal's revenue and earnings are projected to grow significantly above market averages over the next few years.
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Insights from our recent growth report point to a promising forecast for DLocal's business outlook.
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Click here to discover the nuances of DLocal with our detailed financial health report.
Vertex Pharmaceuticals
Overview: Vertex Pharmaceuticals Incorporated is a biotechnology company focused on developing and commercializing therapies for treating cystic fibrosis, with a market cap of approximately $108.15 billion.
Operations: The company's revenue primarily comes from its Pharmaceuticals segment, generating $11.10 billion.
Estimated Discount To Fair Value: 47.2%
Vertex Pharmaceuticals' Q1 2025 results show revenue of US$2.77 billion, a slight increase from the previous year, but net income fell due to a US$379 million impairment charge. Despite this, Vertex is trading at approximately 47% below its estimated fair value of US$823.12 based on discounted cash flows. With raised revenue guidance and expected annual profit growth surpassing market averages, Vertex remains a compelling consideration for investors focused on undervalued stocks with strong cash flow potential.