Over the last 7 days, the United States market has experienced a slight decline of 1.4%, yet it remains up by 17% over the past year, with earnings anticipated to grow by 18% annually. In this context, identifying stocks that may be undervalued involves looking for those with strong fundamentals and growth potential that are not fully reflected in their current prices.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
York Space Systems (YSS)	$17.42	$34.29	49.2%
VSE (VSEC)	$194.60	$382.65	49.1%
Symbotic (SYM)	$40.83	$80.29	49.1%
Ouster (OUST)	$34.77	$68.57	49.3%
Lazard (LAZ)	$42.14	$83.05	49.3%
ConnectOne Bancorp (CNOB)	$33.46	$65.56	49%
Capri Holdings (CPRI)	$15.94	$31.24	49%
Boeing (BA)	$209.48	$414.35	49.4%
Beacon Financial (BBT)	$30.49	$59.72	48.9%
American Healthcare REIT (AHR)	$56.66	$111.43	49.2%

Let's take a closer look at a couple of our picks from the screened companies.

AeroVironment (AVAV)

Overview: AeroVironment, Inc. is a defense technology company that specializes in designing, developing, producing, and supporting robotic systems and related services for government agencies and businesses globally, with a market cap of approximately $7.17 billion.

Operations: The company's revenue is primarily derived from its Autonomous Systems segment, which generated $1.36 billion, and its Space, Cyber and Directed Energy segment, which contributed $618.77 million.

Estimated Discount To Fair Value: 31.4%

AeroVironment is trading at US$142.6, significantly below its estimated future cash flow value of US$207.99, suggesting undervaluation based on discounted cash flows. Despite a volatile share price and low forecasted return on equity, AeroVironment's earnings are projected to grow substantially at 69.76% annually. Recent contracts with Italy and Germany highlight strong demand for its unmanned systems in Europe, potentially enhancing revenue growth above the U.S. market average of 12.6%.

Nu Holdings (NU)

Overview: Nu Holdings Ltd. operates a digital banking platform across Brazil, Mexico, Colombia, the Cayman Islands, and the United States with a market capitalization of $66.07 billion.

Operations: The company's revenue is primarily derived from its banking segment, which generated $7.59 billion.

Estimated Discount To Fair Value: 14.2%

Nu Holdings is trading at $13.99, below its estimated future cash flow value of $16.31, indicating potential undervaluation based on cash flows. The company's earnings grew by 48% last year and are forecasted to grow 20% annually, outpacing the U.S. market average of 17.7%. However, it has a high level of non-performing loans at 7.9%. A recent $1 billion share repurchase program underscores strong cash flow management capabilities.

Victoria's Secret (VSXY)

Overview: Victoria's Secret & Co. is a global specialty retailer of women's intimate apparel, other clothing, and beauty products, with a market cap of approximately $6.47 billion.

Operations: The company's revenue primarily comes from its Retail - Specialty segment, generating $6.76 billion.

Estimated Discount To Fair Value: 42.7%

Victoria's Secret, priced at US$87.41, is significantly undervalued relative to its estimated future cash flow value of US$152.67. Despite high debt levels and recent volatility in share price, the company has strong earnings growth prospects with a forecasted annual increase of 39.6%, outpacing the broader U.S. market. Recent product launches and strategic initiatives under its Path to Potential strategy highlight operational momentum despite being dropped from several Russell indexes in June 2026.

Seize The Opportunity

• Delve into our full catalog of 151 Undervalued US Stocks Based On Cash Flows here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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.