Over the last 7 days, the United States market has risen by 2.2%, and over the past 12 months, it has seen a significant increase of 31%, with earnings expected to grow by 17% per annum in the coming years. In this context of robust market performance, identifying stocks that are potentially undervalued can offer investors opportunities to invest in companies whose intrinsic values may not yet be fully recognized by the market.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Upstart Holdings (UPST)	$28.96	$57.41	49.6%
Unity Software (U)	$28.16	$56.00	49.7%
Travere Therapeutics (TVTX)	$42.60	$84.04	49.3%
Solstice Advanced Materials (SOLS)	$78.25	$153.27	48.9%
Q2 Holdings (QTWO)	$50.13	$98.74	49.2%
PACS Group (PACS)	$33.59	$66.22	49.3%
Janus Living (JAN)	$27.92	$54.11	48.4%
iRhythm Holdings (IRTC)	$120.66	$233.64	48.4%
Cactus (WHD)	$54.14	$104.50	48.2%
AXT (AXTI)	$116.36	$229.80	49.4%

Let's dive into some prime choices out of the screener.

Intuitive Machines (LUNR)

Overview: Intuitive Machines, Inc. is a space infrastructure and services company based in the United States with a market cap of $6.30 billion.

Operations: The company generates revenue primarily from its Aerospace & Defense segment, which accounts for $210.06 million.

Estimated Discount To Fair Value: 29.9%

Intuitive Machines is trading at $28.97, below its estimated future cash flow value of $41.33, indicating it may be undervalued based on discounted cash flows. Despite a volatile share price and recent shareholder dilution, the company projects robust revenue growth of 27.5% annually, outpacing the US market average. Recent contracts with NASA underscore its strategic positioning in space exploration, while expected profitability within three years suggests potential for significant financial improvement.

AST SpaceMobile (ASTS)

Overview: AST SpaceMobile, Inc., along with its subsidiaries, designs and develops the BlueBird satellite constellation in the United States, with a market cap of $29.12 billion.

Operations: The company's revenue is primarily generated from its Wireless Communications Equipment segment, which accounts for $70.92 million.

Estimated Discount To Fair Value: 42.2%

AST SpaceMobile, trading at $75.05, is considerably undervalued with an estimated future cash flow value of $129.89. Despite recent shareholder dilution and a volatile share price, the company forecasts robust annual earnings growth of 109.35% and revenue expansion at 46.6%, surpassing US market averages. The FCC's approval for satellite deployment enhances its strategic position in space-based cellular broadband, while partnerships with major telecom operators bolster its growth trajectory and technological validation.

AXT (AXTI)

Overview: AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates with a market cap of $7.41 billion.

Operations: The company's revenue is primarily derived from the design, development, manufacturing, and distribution of compound and single element semiconductor substrates.

Estimated Discount To Fair Value: 49.4%

AXT, Inc. is significantly undervalued, trading at $116.36 against a future cash flow estimate of $229.8, despite recent shareholder dilution and share price volatility. The company reported Q1 2026 sales of US$26.92 million, improving from US$19.36 million a year ago, with a reduced net loss of US$1.62 million compared to US$8.8 million previously. Forecasted revenue growth of 44.3% annually outpaces the broader market's 11.6%, highlighting its strong potential for profitability within three years.

Next Steps

• Click here to access our complete index of 142 Undervalued US Stocks Based On Cash Flows.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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.