US 10 year bond yields recently fell after softer payroll data, which puts fresh attention on companies that generate solid cash flows yet trade at depressed prices. When growth signals look uncertain, many investors turn to undervalued cash flow opportunities in case sentiment swings back. This article walks through three stocks from the Undervalued Stocks Based On Cash Flows screener that may merit a closer look.

The three stocks highlighted next are only a small sample, with the full screen surfacing 778 more companies with similarly compelling cash flow stories that are not covered here. To identify and analyze the ideas that best fit your own style, head straight to the Undervalued Stocks Based On Cash Flows screener.

FormFactor (FORM)

FormFactor is a semiconductor test equipment company that makes probe cards and related systems used to check that advanced chips like GPUs, AI accelerators, memory and radio-frequency parts work correctly before they ship. The bulk of its revenue comes from Probe Cards at about $747 million, with the Systems segment adding around $155 million. The stock is a mid cap at roughly $9.2b, which puts FormFactor in a size bracket where execution on its AI and high performance computing opportunities can still materially move the needle.

Investors watching the AI hardware build out may want FormFactor on their radar. The company is closely tied to complex chip testing for AI, HBM memory and co packaged optics, and recent results included record quarterly revenue, gross profit and EPS, along with raised 2026 guidance for co packaged optics. At the same time, high customer concentration, margin pressure from product mix and higher operating costs for new capacity mean earnings can swing around, with recent insider selling and funding entirely from external borrowings adding to the risk side of the story. The full picture of how these cash flows stack up against its current valuation is where things get interesting for long term investors.

FormFactor’s record cash generation from AI focused chip testing could be masking a very different story when compared with today’s share price and expectations. Get the full context in the DCF valuation analysis for FormFactor

Build your own cash flow shortlist around FormFactor

FormFactor and the two other stocks in this article all surfaced from a single Simply Wall St screener, which is really just a starting point. Use our customisable Screener to mix filters like valuation, future growth, balance sheet strength and risks, or lean on the foundations of our curated Investing Ideas.

Fluence Energy (FLNC)

Fluence Energy provides large scale battery storage systems and grid software that help utilities and large customers balance renewable power. Almost all of its roughly US$2.6b in revenue comes from Batteries and Battery Systems, which underlines how closely Fluence is tied to the build out of grid level storage rather than smaller behind the meter projects. The stock is a mid cap at around US$2.4b.

Fluence Energy sits at the center of one of the core bottlenecks for renewables and AI hungry data centers: large scale storage that can firm up power supply. Forecast double digit revenue and earnings growth, a sizeable US$6.4b backlog and new products like Smartstack all point to a business that could grow into its cash flow story if execution improves. At the same time, policy risk around tariffs, reliance on external borrowing and recent project delays show why the stock’s current valuation and volatility deserve closer inspection before deciding whether the balance of risk and potential reward fits your portfolio.

Fluence Energy’s storage story sits between accelerating demand and lingering execution questions, which is exactly why the full 3 key rewards and 1 important major warning sign

Unity Software (U)

Unity Software runs a widely used platform that helps developers build, operate and grow games and real time 3D experiences across mobile, PC, console and emerging XR devices. It now also leans heavily on AI tools that support everything from prototyping to monetization. The company has a market cap of about US$18.9b, which puts it firmly in large mid cap territory within the software space.

Unity Software is attracting attention because its core engine and the Vector ad platform sit at the intersection of gaming, AI and real time 3D. Q2 2026 revenue of US$546.47 million and a Vector run rate above US$1b help frame the scale of the opportunity. At the same time, Unity remains loss making, relies fully on external borrowing and has seen heavy insider selling and rapid management turnover. Investors who care about cash flows and valuation may want to look closely at how quickly earnings could catch up to the current growth story and analyst optimism around future profitability.

Unity Software’s mix of gaming, AI tools and real-time 3D points to a story that could be decoupling from headline losses. Get the full analyst forecasts for Unity Software to see what the current optimism might be missing.

Seeking Fresh Alternatives Before They Fly

New ideas can move from quiet to breakout faster than most investors react. Do not let the best under the radar for now picks get away while it matters, act now.

• Spot steady compounders with clean finances and durable cash flows by scanning the curated list of solid balance sheet and fundamentals (49 results) while they are still flying under most radars.
• Consider structural trends in critical materials by reviewing the hand picked 28 best rare earth metal stocks before momentum catches up and pricing power is fully reflected.
• Review potential infrastructure opportunities by checking the focused 36 power grid technology and infrastructure stocks while these companies are still moving in and out of wider attention.

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.