Resilient global growth, sticky inflation and shifting interest rate expectations are keeping markets on edge, yet they are also creating mispriced opportunities. Higher yields, energy sensitive inflation and divergent central bank paths are pushing many investors toward companies with clear cash flow stories and sensible valuations. The Undervalued Stocks Based On Cash Flows screener filters for businesses where the discounted cash flow, or DCF, value from Simply Wall St suggests the market price sits below fair value. This article highlights three stocks from that screener that stand out as potential ideas for value oriented investors to research further.

V.F (VFC)

Overview: V.F Corporation is a global apparel group behind brands such as The North Face, Timberland, Vans, Kipling and JanSport, selling outdoor wear, footwear, bags and accessories through retailers and its own stores and online channels across the Americas, Europe and Asia-Pacific.

Operations: V.F generates about US$5.8b in revenue from its Outdoor segment and US$2.7b from Active, with a further US$1.0b from other activities.

Market Cap: US$5.9b

V.F offers a mix of premium outdoor and lifestyle brands, an improving profitability profile and a share price that screens as undervalued on cash flows, which is why many investors are paying attention. Earnings growth is forecast at 23.92% per year and recent results show expanding margins and better free cash flow, while North Face and Timberland are offsetting weakness at Vans. At the same time, high leverage, an unstable dividend history and a recent US$109.5m one off loss mean the turnaround relies on careful execution and a cleaner balance sheet. If you want to understand whether the improving margins, debt reduction plans and brand refresh can outweigh the Vans drag and tariff risks, you need to see how all of this fits together in the full narrative for V.F.

V.F.’s improving margins, debt clean up plans and brand mix could be telling a different story to the headline volatility. To see how that trade off between potential rewards and execution risks really stacks up, start with the 3 key rewards and 3 important warning signs

MasTec (MTZ)

Overview: MasTec is an infrastructure engineering and construction company that builds and maintains critical assets such as power grids, pipelines, broadband and fiber networks, renewable energy projects and data center related electrical systems for utilities, energy producers, communications providers and government clients across the United States and Canada.

Market Cap: US$25.7b

MasTec is attracting attention because it sits at the center of several large spending cycles, including grid modernization, renewable energy build out, broadband expansion and the growing demand for data centers. Earnings growth has been strong, margins are improving and the record US$21.4b backlog reported around Q2 2026 gives investors clearer revenue visibility. This is supported by the recent Superior Group acquisition, which deepens data center and mission critical exposure. At the same time, high debt, reliance on a relatively small number of large customers and sensitivity to government policy and regulation mean execution missteps or slower project awards could quickly affect cash flows. To decide whether that trade off between strong backlog, growth investments and balance sheet risk suits your portfolio, you need to look more closely at MasTec’s full risk reward picture.

MasTec’s accelerating backlog and data center exposure look powerful on paper, but the real story is how that growth lines up against debt and customer concentration. Get the full 4 key rewards and 2 important warning signs

Carrier Global (CARR)

Overview: Carrier Global is a climate and energy solutions company that supplies heating, cooling, ventilation and energy management systems for homes, commercial buildings and transport, as well as services and digital monitoring across its global brand portfolio including Carrier, Viessmann, Toshiba and Bryant.

Operations: Carrier Global generates about US$10.5b from Climate Solutions Americas, US$5.2b from Climate Solutions Europe, US$3.4b from Climate Solutions Asia Pacific, Middle East & Africa and US$3.0b from Climate Solutions Transportation.

Market Cap: US$50.6b

Carrier Global is drawing attention because its climate systems, data center cooling and energy efficient products are positioned where demand for smarter, lower carbon infrastructure is building. The company has raised 2026 sales and earnings guidance, reported strong orders with backlog above US$8b and is targeting about US$2b of data center revenue this year. At the same time, weaker performance in certain regions, tariff exposure and thinner margins in Europe highlight that execution is important. If you want to see how the AI data center story, Viessmann integration, service growth and tariff risks all feed into the risk reward profile, you can read the full analysis on Carrier Global.

Carrier Global’s accelerating data center revenue and US$8b plus backlog hint at a story investors may not be fully pricing in yet. Get the full analysis report for Carrier Global to see the twist that could change the risk reward balance.

The three stocks covered here are only a starting point. The full Undervalued Stocks Based On Cash Flows screener has identified 155 more companies with DCF backed stories that may be just as compelling. Analyze and filter that wider list using Simply Wall St to identify the specific catalysts and cash flow narratives that fit your highest conviction ideas through the Undervalued Stocks Based On Cash Flows screener.

Take Control of Your Investment Journey

If Carrier Global or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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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.