In a period marked by significant market volatility, with the Dow Jones Industrial Average and Nasdaq experiencing sharp declines, investors are keenly observing opportunities that may arise from these fluctuations. Amidst this turbulence, identifying stocks potentially trading below their estimated value becomes crucial for those looking to make informed investment decisions.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
CareTrust REIT (NYSE:CTRE)	$27.67	$54.55	49.3%
TowneBank (NasdaqGS:TOWN)	$30.76	$61.00	49.6%
First Bancorp (NasdaqGS:FBNC)	$36.38	$72.67	49.9%
KeyCorp (NYSE:KEY)	$13.74	$27.10	49.3%
Moog (NYSE:MOG.A)	$159.91	$313.65	49%
First Reliance Bancshares (OTCPK:FSRL)	$9.35	$18.55	49.6%
Viking Holdings (NYSE:VIK)	$39.22	$77.21	49.2%
Verra Mobility (NasdaqCM:VRRM)	$21.73	$43.23	49.7%
First Advantage (NasdaqGS:FA)	$13.83	$27.54	49.8%
CNX Resources (NYSE:CNX)	$28.96	$57.14	49.3%

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

DoorDash (NasdaqGS:DASH)

Overview: DoorDash, Inc. operates a commerce platform that links merchants, consumers, and independent contractors both in the United States and internationally, with a market cap of approximately $79.22 billion.

Operations: The company's revenue primarily stems from its Internet Information Providers segment, generating $10.72 billion.

Estimated Discount To Fair Value: 48.7%

DoorDash is trading significantly below its estimated fair value of US$347.81, with a current price of US$178.52, suggesting potential undervaluation based on cash flows. Recent profitability and expected earnings growth of 37.7% annually outpace the broader U.S. market's 13.7%. The company’s strategic expansion in robot delivery services and SNAP/EBT payment capabilities highlight its commitment to innovation and accessibility, potentially enhancing long-term cash flow generation despite recent insider selling activities.

NVIDIA (NasdaqGS:NVDA)

Overview: NVIDIA Corporation is a computing infrastructure company that offers graphics, compute, and networking solutions globally with a market cap of $2.79 trillion.

Operations: The company's revenue is primarily derived from its Graphics segment, which generated $14.30 billion, and its Compute & Networking segment, which brought in $116.19 billion.

Estimated Discount To Fair Value: 24.7%

NVIDIA, trading at US$107.57, is valued below its estimated fair value of US$142.93, indicating potential undervaluation based on cash flows. Despite significant insider selling recently, NVIDIA's revenue and earnings are projected to grow over 20% annually, surpassing the U.S. market average. Strategic collaborations in quantum computing and AI-enhanced technologies underscore its innovative edge, potentially bolstering future cash flows amidst robust analyst price targets suggesting a 56.2% potential upside in stock price.

Zscaler (NasdaqGS:ZS)

Overview: Zscaler, Inc. is a global cloud security company with a market cap of approximately $30.23 billion.

Operations: The company's revenue is primarily derived from sales of subscription services to its cloud platform and related support services, totaling approximately $2.42 billion.

Estimated Discount To Fair Value: 24.8%

Zscaler, priced at US$195.36, is trading below its estimated fair value of US$259.81, highlighting potential undervaluation based on cash flows. Despite recent insider selling, Zscaler's earnings are forecast to grow substantially at 40.66% annually over the next three years, outpacing market averages and moving towards profitability. The company's collaboration with T-Mobile and integration within SAP environments demonstrate strategic advancements that may enhance future cash flows amidst positive analyst price targets forecasting a 21.2% upside.

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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.