Over the last 7 days, the United States market has dropped 2.5%, yet it has risen by 20% over the past year with earnings forecasted to grow by 19% annually. In this context of fluctuating short-term performance and promising long-term growth potential, identifying stocks that are trading significantly below their intrinsic value estimates can offer attractive opportunities for investors seeking value in a robust market environment.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Warrior Met Coal (HCC)	$84.15	$165.81	49.3%
Robert Half (RHI)	$30.08	$59.93	49.8%
Natera (NTRA)	$259.97	$498.21	47.8%
Merck (MRK)	$120.60	$228.62	47.2%
Gold Royalty (GROY)	$2.68	$5.33	49.8%
ConnectOne Bancorp (CNOB)	$33.37	$66.59	49.9%
Clear Secure (YOU)	$52.95	$101.17	47.7%
Beacon Financial (BBT)	$30.60	$60.12	49.1%
AppLovin (APP)	$464.96	$908.69	48.8%
Alignment Healthcare (ALHC)	$21.69	$41.24	47.4%

Let's uncover some gems from our specialized screener.

Sotera Health (SHC)

Overview: Sotera Health Company offers sterilization solutions, lab testing, and advisory services for the healthcare industry across the United States, Canada, Europe, and internationally with a market cap of $4.52 billion.

Operations: The company's revenue segments consist of Nordion at $197.07 million, Nelson Labs at $219.84 million, and Sterigenics at $772.23 million.

Estimated Discount To Fair Value: 31.3%

Sotera Health appears undervalued based on cash flows, trading at US$16.69 against an estimated future cash flow value of US$24.28. Despite a slower revenue growth forecast of 5.7% annually, earnings are expected to grow significantly at 29% per year, outpacing the broader market's 18.5%. However, interest payments remain inadequately covered by earnings. Recent refinancing efforts reduced interest rates slightly but increased debt levels with new term loans totaling over US$1 billion maturing in 2031.

American Healthcare REIT (AHR)

Overview: American Healthcare REIT, Inc., a Maryland-based self-managed REIT, owns and operates a diversified portfolio of clinical healthcare real estate across the U.S., U.K., and the Isle of Man, with a market cap of $9.47 billion.

Operations: The company's revenue segments include Shop ($369.11 million), Outpatient Medical ($123.73 million), Triple-net Leased Properties ($39.47 million), and Integrated Senior Health Campuses ($1.84 billion).

Estimated Discount To Fair Value: 33.7%

American Healthcare REIT, trading at US$50.1, is undervalued against its estimated future cash flow value of US$75.6. Despite revenue growth forecasted at 12.7% annually and earnings expected to grow significantly at 25.2% per year, recent equity offerings raised US$700 million, potentially diluting shareholder value. The company revised earnings guidance downward but reported a net income of US$23.71 million in Q1 2026 compared to a loss the previous year.

Toast (TOST)

Overview: Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry globally, with a market cap of approximately $14.21 billion.

Operations: The company's revenue is primarily derived from its data processing segment, which generated $6.45 billion.

Estimated Discount To Fair Value: 25.2%

Toast, priced at US$26.02, appears undervalued relative to its projected cash flow value of US$34.8. Its earnings are anticipated to grow significantly at 25.1% annually, exceeding the U.S. market average growth rate of 18.5%. Recent partnerships with Hungry Howie’s and The Alinea Group highlight its expanding client base and technological appeal, while Q1 revenue increased to US$1.63 billion from US$1.34 billion year-on-year, reflecting robust operational performance amidst strategic expansions and product innovations like Toast IQ Grow.

Taking Advantage

• Dive into all 129 of the Undervalued US Stocks Based On Cash Flows we have identified here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Ready To Venture Into Other Investment Styles?

• 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.