Over the past year, the United States market has experienced a 19% increase, although it remained flat over the past week, with earnings projected to grow by 18% annually in the coming years. In this context of overall growth potential, identifying stocks that are currently trading below their fair value can offer investors opportunities for strong returns while aligning with future earnings expectations.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Victoria's Secret (VSXY)	$76.19	$150.89	49.5%
Steel Dynamics (STLD)	$222.06	$431.26	48.5%
Q2 Holdings (QTWO)	$52.14	$102.91	49.3%
Procore Technologies (PCOR)	$44.02	$86.91	49.4%
Natera (NTRA)	$281.85	$552.95	49%
Lazard (LAZ)	$41.70	$82.36	49.4%
Janus Living (JAN)	$29.13	$57.58	49.4%
Forbright (FRBT)	$20.22	$40.44	50%
Beacon Financial (BBT)	$30.03	$59.73	49.7%
Amaroq (AMRQ.F)	$1.1425	$2.24	48.9%

Let's dive into some prime choices out of the screener.

CECO Environmental (CECO)

Overview: CECO Environmental Corp. offers essential solutions in industrial air quality, water treatment, and energy transition across the United States, the United Kingdom, the Netherlands, China, and other international markets with a market cap of approximately $4.64 billion.

Operations: The company's revenue segments consist of Engineered Systems, generating $574.40 million, and Industrial Process Solutions, contributing $229.20 million.

Estimated Discount To Fair Value: 15.3%

CECO Environmental appears undervalued, trading 15.3% below its estimated fair value of US$99.56, with a current price of US$84.32. Despite recent index exclusions and a net loss in Q1 2026, CECO's revenue is forecast to grow significantly at 29.7% annually, outpacing the market average. However, debt coverage by operating cash flow is weak and profit margins have declined from last year’s levels while shareholders faced substantial dilution recently.

Perimeter Solutions (PRM)

Overview: Perimeter Solutions, Inc. is a company that manufactures and supplies firefighting products, electronic components, lubricant additives, and engineered machinery across the United States, Germany, and internationally with a market cap of $5.51 billion.

Operations: The company generates revenue from two main segments: Fire Safety, contributing $497.22 million, and Specialty Products, accounting for $208.68 million.

Estimated Discount To Fair Value: 33%

Perimeter Solutions is trading at US$35.09, significantly below its estimated future cash flow value of US$52.40, indicating potential undervaluation. The company expects earnings to grow 73.87% annually and aims for profitability within three years, surpassing market growth rates. Despite recent index exclusions and insider selling, Perimeter's strategic focus on acquisitions in niche markets with high returns could enhance value creation through disciplined operational improvements post-acquisition while maintaining strong liquidity for further investments.

Viking Holdings (VIK)

Overview: Viking Holdings Ltd operates passenger cruises in North America, the United Kingdom, and internationally with a market cap of $43.71 billion.

Operations: The company generates revenue through its Viking Ocean segment, contributing $2.97 billion, and its Viking River segment, which brings in $3.11 billion.

Estimated Discount To Fair Value: 39.2%

Viking Holdings is trading at US$101.21, which is significantly below its estimated future cash flow value of US$166.39, suggesting potential undervaluation. Despite a net loss of US$54.38 million in Q1 2026, revenue increased to over a billion dollars compared to the previous year. Viking's earnings are forecasted to grow faster than the U.S. market, with new river and ocean ships enhancing operational capacity and potentially driving future cash flows despite high debt levels and insider selling concerns.

Seize The Opportunity

• Dive into all 140 of the Undervalued US Stocks Based On Cash Flows we have identified here.
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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.