Over the last 7 days, the United States market has experienced a slight decline of 1.0%, yet it remains up by an impressive 23% over the past year, with earnings forecasted to grow by 17% annually. In such a fluctuating environment, identifying stocks that are trading below their intrinsic value can offer potential opportunities for investors seeking to capitalize on undervalued assets.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Upstart Holdings (UPST)	$28.08	$55.81	49.7%
Travere Therapeutics (TVTX)	$42.26	$84.32	49.9%
Solstice Advanced Materials (SOLS)	$79.87	$154.95	48.5%
Lazard (LAZ)	$45.40	$89.57	49.3%
Kaspi.kz (KSPI)	$89.68	$173.40	48.3%
First Merchants (FRME)	$39.60	$76.27	48.1%
FB Financial (FBK)	$51.61	$101.61	49.2%
CVR Energy (CVI)	$34.34	$67.76	49.3%
Coastal Financial (CCB)	$68.90	$134.79	48.9%
AbbVie (ABBV)	$213.76	$420.91	49.2%

Here we highlight a subset of our preferred stocks from the screener.

AppFolio (APPF)

Overview: AppFolio, Inc., along with its subsidiaries, offers a cloud-based platform for the real estate industry in the United States and has a market capitalization of approximately $5.58 billion.

Operations: AppFolio generates revenue from its cloud-based business management software and Value+ platforms, totaling approximately $995.33 million.

Estimated Discount To Fair Value: 31.2%

AppFolio, Inc. is trading at US$159.82, significantly below its estimated future cash flow value of US$232.36, suggesting potential undervaluation based on cash flows. Despite a drop in profit margins to 15.3% from 23.9% last year, the company reported strong Q1 earnings with net income rising to US$42.42 million and raised its revenue guidance for 2026 to between US$1.11 billion and US$1.125 billion, indicating robust growth prospects ahead of market averages.

Amer Sports (AS)

Overview: Amer Sports, Inc. is engaged in the design, manufacture, marketing, distribution, and sale of sports equipment, apparel, footwear, and accessories across various regions including Europe and Asia Pacific with a market cap of $19.29 billion.

Operations: The company's revenue is derived from the design, manufacture, marketing, distribution, and sale of sports equipment, apparel, footwear, and accessories across Europe, the Middle East, Africa, the Americas, Mainland China, Hong Kong, Macau, Taiwan, and the Asia Pacific.

Estimated Discount To Fair Value: 11.4%

Amer Sports, Inc. reported strong Q1 2026 earnings with sales increasing to US$1.95 billion and net income rising to US$164.6 million, reflecting robust growth in cash flows. The stock trades at US$33.83, slightly below its estimated future cash flow value of US$38.19, indicating some undervaluation based on cash flows despite a recent equity offering of $750 million. The company has raised its full-year revenue guidance by 20%–22%, supporting positive growth expectations above market averages.

Kyndryl Holdings (KD)

Overview: Kyndryl Holdings, Inc. is a technology services company specializing in IT infrastructure services across the United States, Japan, and other international markets with a market cap of approximately $2.64 billion.

Operations: The company's revenue segments comprise $2.28 billion from Japan, $3.78 billion from the United States, $5.40 billion from Principal Markets, and $3.63 billion from Strategic Markets.

Estimated Discount To Fair Value: 38.4%

Kyndryl Holdings trades at US$12.03, significantly below its estimated future cash flow value of US$19.54, suggesting undervaluation on cash flows despite high debt levels. Analysts expect earnings to grow 31.4% annually over the next three years, outpacing the US market's growth rate. Recent expansions in AI-powered services and strategic alliances bolster its infrastructure technology offerings, although legal challenges regarding free cash flow metrics present risks to financial transparency and investor confidence.

Key Takeaways

• Gain an insight into the universe of 147 Undervalued US Stocks Based On Cash Flows by clicking here.
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Want To Explore Some Alternatives?

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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.