Over the last 7 days, the United States market has experienced a 1.1% decline, yet it remains up by 5.9% over the past year with earnings anticipated to grow by 13% annually in the coming years. In this context, identifying stocks that may be trading below their estimated value can offer potential opportunities for investors looking to capitalize on future growth prospects amidst current market fluctuations.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name Current Price Fair Value (Est) Discount (Est) NBT Bancorp (NasdaqGS:NBTB) $39.76 $78.07 49.1% TowneBank (NasdaqGS:TOWN) $31.80 $62.34 49% First National (NasdaqCM:FXNC) $18.60 $36.91 49.6% First Bancorp (NasdaqGS:FBNC) $37.12 $72.67 48.9% Ready Capital (NYSE:RC) $4.39 $8.65 49.2% Datadog (NasdaqGS:DDOG) $91.18 $178.40 48.9% Curbline Properties (NYSE:CURB) $23.18 $45.98 49.6% Viking Holdings (NYSE:VIK) $39.80 $77.28 48.5% RXO (NYSE:RXO) $13.24 $26.48 50% CNX Resources (NYSE:CNX) $30.82 $60.53 49.1%

Click here to see the full list of 172 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Grab Holdings

Overview: Grab Holdings Limited operates as a superapp provider in Southeast Asia, offering services across Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam with a market cap of approximately $16.73 billion.

Operations: Grab's revenue is primarily derived from three segments: Mobility ($1.05 billion), Deliveries ($1.49 billion), and Financial Services ($253 million).

Estimated Discount To Fair Value: 19.1%

Grab Holdings is currently trading at US$4.11, which is 19.1% below its estimated fair value of US$5.08, indicating it may be undervalued based on cash flows. The company reported a significant reduction in net loss from US$434 million to US$105 million year-over-year, with revenue growth expected to outpace the broader U.S. market at 13.8% annually. Recent inclusion in the NASDAQ Internet Index and ongoing M&A discussions could impact future valuations and cash flow dynamics.

Our expertly prepared growth report on Grab Holdings implies its future financial outlook may be stronger than recent results. Delve into the full analysis health report here for a deeper understanding of Grab Holdings.NasdaqGS:GRAB Discounted Cash Flow as at Apr 2025

Hess Midstream

Overview: Hess Midstream LP owns, operates, develops, and acquires midstream assets to provide fee-based services to Hess and third-party customers in the United States, with a market cap of $8.66 billion.

Operations: The company's revenue segments include Gathering at $799.10 million, Processing and Storage at $577.70 million, and Terminaling and Export at $118.70 million.

Story Continues

Estimated Discount To Fair Value: 35%

Hess Midstream, trading at US$37.53, is significantly undervalued with an estimated fair value of US$57.71 based on cash flows. Despite a high debt level and a dividend not fully covered by earnings or free cash flows, its earnings are projected to grow 24.8% annually, surpassing the U.S. market average. Recent equity offerings raised US$433.95 million, potentially supporting future growth initiatives amidst strong operational performance in 2024 and positive 2025 guidance.

In light of our recent growth report, it seems possible that Hess Midstream's financial performance will exceed current levels. Click here to discover the nuances of Hess Midstream with our detailed financial health report.NYSE:HESM Discounted Cash Flow as at Apr 2025

Jabil

Overview: Jabil Inc. offers manufacturing services and solutions on a global scale, with a market cap of approximately $14.50 billion.

Operations: Jabil's revenue segments include Electronics Manufacturing Services at $19.81 billion and Diversified Manufacturing Services at $14.73 billion.

Estimated Discount To Fair Value: 39.1%

Jabil, trading at US$135.04, is highly undervalued with a fair value estimate of US$221.84 based on discounted cash flows. Despite recent earnings pressure and lower profit margins, its annual profit growth is expected to outpace the U.S. market significantly at 30.3%. The company maintains a strong return on equity forecast and has launched innovative products like 1.6T transceivers to drive future demand in high-performance computing markets while managing substantial debt levels effectively.

The growth report we've compiled suggests that Jabil's future prospects could be on the up. Get an in-depth perspective on Jabil's balance sheet by reading our health report here.NYSE:JBL Discounted Cash Flow as at Apr 2025

Taking Advantage

Access the full spectrum of 172 Undervalued US Stocks Based On Cash Flows by clicking on this link. Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Searching for a Fresh Perspective?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:GRABNYSE:HESM and NYSE:JBL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

View Comments