With inflation signals mixed across major economies and policy expectations shifting, many investors are looking more closely at cash flow rather than short term headlines. The Undervalued Stocks Based On Cash Flows screener focuses on companies where SWS DCF valuation suggests the market price sits below the estimated fair value. That can appeal to investors seeking exposure to solid cash generation without paying a premium. In this article you will see three stocks from this screener, along with a clear breakdown of why their cash flow profiles stand out right now.

Sterling Infrastructure (STRL)

Overview: Sterling Infrastructure is a US-based construction and engineering company that focuses on e-infrastructure projects such as data centers and e-commerce facilities, as well as transportation projects such as highways, bridges, and airports, and concrete foundations for residential and commercial buildings. It serves blue chip customers and public authorities across multiple US regions from its headquarters in The Woodlands, Texas.

Operations: Sterling Infrastructure generates US$1.8b from e-Infrastructure Solutions, US$652.9m from Transportation Solutions, and US$385.7m from Building Solutions, with all of its US$2.9b revenue coming from the United States.

Market Cap: US$15.2b

Sterling Infrastructure may appeal to investors who prioritize cash flows linked to specific projects rather than thematic narratives. The company is significantly involved in data centers, e-commerce, semiconductors and large US infrastructure work, supported by a record backlog and raised 2026 guidance, which together provide clearer visibility on its expected revenue and earnings over that period. At the same time, investors need to be comfortable with notable risks, including reliance on large-scale projects, funding cycles that may change after 2026, and a share price that has shown considerable volatility alongside recent insider selling. Strong liquidity, an expanded credit facility and ongoing acquisitions give management room to continue shifting the business mix toward higher margin work, but the balance between opportunity and execution risk remains a central consideration.

Surging project visibility at Sterling Infrastructure can look like the full story, yet the real question is how much is already priced into the cash flows. Get the DCF valuation analysis for Sterling Infrastructure to see what the market might be missing

Corning (GLW)

Overview: Corning is a materials and technology company that supplies the glass, optical fiber, and advanced ceramics behind products like high speed telecom networks, flat panel displays, smartphones, autos, and pharmaceutical packaging across the US, Europe, and Asia.

Market Cap: US$114.2b

Corning provides exposure to some of the infrastructure behind AI data centers, high speed broadband, and solar. Its Springboard plan targets a large increase in annual sales, backed by agreements with customers such as Amazon, NVIDIA, and Meta. Earnings growth over the past year has been strong, free cash flow from recent results has been solid, and the company has continued to return cash through dividends and buybacks. At the same time, relatively high debt levels, reliance on non GAAP metrics, insider selling, and sensitivity to tariffs and AI or solar demand mean investors need to be comfortable with meaningful risk. A key question for investors is whether current market volatility represents an entry point into future cash flows or a potential value trap.

Corning’s mix of AI infrastructure, broadband and solar exposure can look like pure momentum, yet the real tension is in the cash flows. Review the 4 key rewards and 3 important warning signs to see what might be hiding in plain sight

Klaviyo (KVYO)

Overview: Klaviyo is a cloud software company that helps consumer facing businesses use their customer data to run targeted marketing, sales, and support across email, SMS, social channels, and on site experiences. Its platform combines customer relationship management, analytics, and AI driven agents so brands can personalize communications and manage customer interactions from one place.

Operations: Klaviyo generates about US$1.3b in revenue from internet software, with around US$778.7m from the United States and the balance spread across Europe, the Asia Pacific region, and other international markets.

Market Cap: US$5.7b

Klaviyo sits at the crossroads of e commerce, AI, and first party data. Many investors are watching it closely despite current losses and share price volatility. The company is growing outside the US, extending from marketing automation into broader B2C CRM and customer service, and rolling out AI agents that could lift what each customer spends over time. At the same time, heavier spending on infrastructure and messaging channels, intense competition from larger software platforms, and reliance on partners like Shopify create execution risk. For investors focused on cash flow driven value, the interest lies in how this mix of product expansion, raised revenue guidance, and ongoing margin pressure ultimately filters through to more durable cash generation.

Klaviyo’s expanding AI agents and global reach make the growth story hard to ignore, yet the real intrigue sits in future cash generation. See how the analyst forecasts for Klaviyo frames the upside and the risk that could flip the script.

The three stocks in this article are just a starting point, as the full Undervalued Stocks Based On Cash Flows screen has surfaced 153 more companies where the SWS DCF work suggests equally compelling cash flow stories, all collected in the Undervalued Stocks Based On Cash Flows screener. Use Simply Wall St to identify and analyze the specific catalysts and cash flow narratives that matter most to you. This can help you focus on the highest conviction ideas for your portfolio.

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If Klaviyo 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.