Over the last 7 days, the United States market has risen by 2.2%, contributing to a significant 31% increase over the past year, with earnings forecasted to grow by 17% annually. In such a robust environment, identifying stocks that may be trading below their estimated value can offer investors potential opportunities for growth and diversification.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Upstart Holdings (UPST)	$28.96	$57.41	49.6%
Unity Software (U)	$28.16	$56.00	49.7%
Travere Therapeutics (TVTX)	$42.60	$84.04	49.3%
Solstice Advanced Materials (SOLS)	$78.25	$153.27	48.9%
Q2 Holdings (QTWO)	$50.13	$98.74	49.2%
PACS Group (PACS)	$33.59	$66.22	49.3%
Janus Living (JAN)	$27.92	$54.11	48.4%
iRhythm Holdings (IRTC)	$120.66	$233.64	48.4%
Cactus (WHD)	$54.14	$104.50	48.2%
AXT (AXTI)	$116.36	$229.80	49.4%

Let's review some notable picks from our screened stocks.

Lazard (LAZ)

Overview: Lazard, Inc. is a financial advisory and asset management firm with operations across the Americas, Europe, the Middle East, Africa, and the Asia Pacific, and it has a market cap of approximately $4.73 billion.

Operations: The company's revenue is primarily derived from its Financial Advisory segment at $1.83 billion and Asset Management segment at $1.40 billion.

Estimated Discount To Fair Value: 46.4%

Lazard is trading at US$48.08, significantly below its estimated future cash flow value of US$89.71, indicating it may be undervalued based on cash flows. Despite a high debt level and an unstable dividend track record, Lazard's earnings are projected to grow 31.3% annually over the next three years, surpassing both its peers and the broader US market growth rates. Recent Q1 earnings showed net income rising to US$100.92 million from last year's US$60.38 million.

On Holding (ONON)

Overview: On Holding AG, with a market cap of $11.66 billion, develops and distributes performance sports products under the On brand across various regions including Europe, the Middle East, Africa, the Americas, and Asia-Pacific.

Operations: The company's revenue segment includes Athletic Footwear, generating CHF 3.01 billion.

Estimated Discount To Fair Value: 20.8%

On Holding, trading at $35.24, is valued below its estimated future cash flow value of $44.51, suggesting potential undervaluation based on cash flows. Despite a decline in net profit margin from 10.5% to 6.8%, the company anticipates robust earnings growth of 24.4% annually over the next three years, outpacing the US market's average growth rate. Recent organizational changes aim to enhance strategic execution as On Holding scales globally with projected revenue growth exceeding market averages.

York Space Systems (YSS)

Overview: York Space Systems, Inc. is a space and defense company offering mission-critical solutions to national security, government, and commercial clients in the U.S., with a market cap of $4.44 billion.

Operations: The company's revenue is primarily derived from its Aerospace & Defense segment, totaling $386.20 million.

Estimated Discount To Fair Value: 11.2%

York Space Systems, trading at US$34.79, is valued below its estimated future cash flow value of US$39.18, indicating potential undervaluation based on cash flows. The company forecasts robust revenue growth of 26.7% annually, surpassing the US market average. Recent IDIQ contract awards in national security and defense enhance York's strategic position and operational scale, while board expansion with experienced leadership supports governance as it aims for profitability within three years amidst volatile share prices.

Key Takeaways

• Take a closer look at our Undervalued US Stocks Based On Cash Flows list of 142 companies by clicking here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Searching for a Fresh Perspective?

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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.