Oil price volatility is keeping inflation and interest rate expectations in focus. That kind of backdrop often puts extra weight on reliable cash generation, which can help support a business when funding costs are less predictable. When a stock with solid cash flow potential trades below an estimate of fair value, it can catch the eye of patient investors. This article walks through three such stocks from the Undervalued Stocks Based On Cash Flows screener.

The three stocks covered next are just a starting sample. The full screen highlights 780 more companies with similarly interesting cash flow stories that are not covered here. To identify ideas that fit your own risk and return preferences, head straight into the Undervalued Stocks Based On Cash Flows screener.

Flex (FLEX)

Flex is a global manufacturing and supply chain partner that helps customers build everything from data center hardware to automotive electronics and medical equipment. Its largest revenue contributor is the Integrated Technology Solutions segment at about US$11.6b, followed by Regulated Manufacturing Solutions at roughly US$10.5b and Cloud and Power Infrastructure at about US$7.2b. The company is a large cap stock with a market value of around US$45.3b.

Flex is attracting attention because its Cloud and Power Infrastructure arm is tightly linked to AI data center build outs. It reported Q1 FY2027 revenue of US$7.93b and a strong CPI growth profile feeding into a planned spin off in early 2027. Analysts expect earnings and revenue expansion, while Simply Wall St’s model suggests the current price sits below its estimated future cash flow value. On the other hand, the company has thin margins, high debt funded almost entirely through external sources, and fresh insider selling. Together, these factors raise questions about how much pressure the balance sheet can absorb if growth slows. For investors, the key issue is whether Flex’s AI infrastructure exposure and shifting revenue mix can compensate for these funding and concentration risks.

Flex’s AI infrastructure story and thin margins can pull in different directions for investors. To see how Simply Wall St weighs that trade off across cash flows, balance sheet pressure and execution risk, read the 4 key rewards and 2 important warning signs

Build your own AI infrastructure cash flow shortlist

Flex and the two other stocks in this article all surfaced from a single Simply Wall St screener, but the real edge comes when you tailor the process to your own rules. Use our customisable Screener to blend valuation, cash flow, balance sheet and risk filters, or tap into our curated Investing Ideas for ready made starting points.

Dynatrace (DT)

Dynatrace runs a single AI powered observability platform that helps large organisations monitor and secure their digital systems, from infrastructure to applications and user experience. The company generates essentially all of its US$2.1b in revenue from internet software and services, and it sells globally across sectors like banking, government and retail. Dynatrace is a mid sized software stock with a market value of about US$14.1b.

Dynatrace is on many investors’ radars because its AI observability platform sits at the heart of growing cloud and software complexity, and recent results showed ARR momentum, raised guidance and active share buybacks. At the same time, you are dealing with a high P/E multiple, thinner net margins after a tough earnings year, and real competitive and execution risks as deal sizes grow and sales cycles lengthen. For anyone interested in cash flow backed growth stories tied to AI infrastructure and digital transformation, the rest of Dynatrace’s story is worth a closer look.

Dynatrace’s accelerating ARR story and high P/E multiple leave a big question hanging over the stock. Get the full context with the analyst forecasts for Dynatrace and see what might be hiding behind the headline momentum.

Clear Secure (YOU)

Clear Secure runs an identity verification platform under the CLEAR brand that speeds members through airport security and supports digital ID checks in everyday settings. The company’s services range from CLEAR Plus airport subscriptions and TSA PreCheck enrollments to digital IDs and B2B tools like CLEAR1 for secure, low friction customer experiences. Clear Secure has a market value of about US$7.2b.

Clear Secure is drawing attention because it sits at the crossroads of rising travel demand and wider use of biometric identity. The company recently reported record free cash flow of US$189 million for Q2 2026 and raised full year free cash flow guidance. At the same time, investors need to weigh seasonality in memberships, pricing changes that could test customer loyalty, rich valuation multiples and insider selling against strong growth in bookings and new partnerships with Samsung, Expedia and government focused contractors. The key consideration is whether Clear Secure’s expanding ecosystem and cash generation are sufficient to support the expectations currently reflected in the stock and in analyst targets that remain above today’s price.

Clear Secure’s cash rich Q2 2026 and ecosystem partnerships may be masking a more complex story about what the market is really pricing in. See how growth, expectations and risk line up in the analyst forecasts for Clear Secure

Seeking Fresh Alternatives Before They Fly

New themes can reach breakout momentum before most investors even notice. Some stay under the radar for now, others get caught once prices start dropping, so consider acting while you have time to evaluate.

• Target resilient cash generators that could hold up when conditions change by scanning our curated list of solid balance sheet and fundamentals (49 results). Review sturdier balance sheets before attention shifts.
• Explore potential AI-related opportunities while it still feels early by filtering for 68 profitable AI stocks that aren't just burning cash. Focus on businesses already turning AI demand into real earnings and cash.
• Position for possible power grid upgrades by reviewing the hand picked 36 power grid technology and infrastructure stocks. Identify companies tied to critical infrastructure before the story becomes widely followed.

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.