With inflation, energy costs and interest rate expectations all pulling markets in different directions, it is easy to feel stuck on the sidelines. That is where the High Quality Undervalued Stocks screener can help. It focuses on companies with solid cash generation and strong balance sheets that the market has not fully appreciated yet, so you are not relying purely on an optimistic story. In this article, you will see three examples of stocks from this screener and how they might offer a way to stay invested while keeping an eye on quality and valuation discipline.

TTM Technologies (TTMI)

Overview: TTM Technologies is a Santa Ana based electronics manufacturer that supplies complex printed circuit boards, RF components, and mission systems used in aerospace and defense equipment, data centers, autos, medical devices, and other industrial and networking hardware worldwide.

Operations: TTM Technologies generates most of its revenue from Commercial customers at about US$1.75b and Aerospace & Defense at about US$1.33b, primarily across the United States (about US$1.61b) and other international markets (about US$1.20b).

Market Cap: US$14.9b

Investors looking at TTM Technologies are effectively weighing a company involved in AI data center and defense electronics demand against a range of execution and funding risks. The company is expanding capacity in the US, Malaysia and Europe to serve AI servers, cloud infrastructure and a US$1.46b aerospace and defense backlog. Recent earnings and margin trends have pointed to improving profitability and cash generation. At the same time, a high P/E, sizeable external debt facilities, customer concentration and exposure to higher cost US manufacturing and geopolitical tensions in China indicate that results could be volatile if growth or utilization are lower than anticipated. The potential benefit to investors depends on whether AI and defense demand, together with new facilities, is sufficient to offset those pressures.

TTM Technologies sits where AI data center demand meets defense electronics, yet the real story is buried in the numbers. Start with the 4 key rewards and 2 important warning signs to see what could tip the balance next.

On Holding (ONON)

Overview: On Holding is a Zurich based sportswear company that designs and sells premium athletic footwear, apparel, and accessories under the On brand. It targets runners, outdoor enthusiasts, and everyday athletes through both wholesale and direct to consumer channels worldwide.

Operations: On Holding generates essentially all of its revenue from athletic footwear at about CHF3.1b, with Asia Pacific contributing about CHF564.5m.

Market Cap: US$12.40b

On Holding attracts attention because it blends a fast growing direct to consumer and e commerce model with a premium sportswear brand that is expanding across running, tennis, trail, and lifestyle categories. Rising DTC mix, higher price points, and automation like LightSpray are aimed at supporting margins and returns. International demand, especially in Asia Pacific, has been strong. At the same time, a high P/E, heavy spending on marketing and store growth, and reliance on premium pricing and hype collaborations mean results could be sensitive if fashion trends or consumer spending weaken. For investors, the key question is whether On’s brand strength, growth in new product lines, and sustainability initiatives using renewable materials can justify that premium over time.

On Holding’s premium growth story often looks straightforward, but the real tension sits between brand heat and what happens if that cools. Step through the analyst forecasts for On Holding to see where expectations could suddenly shift.

Everpure (P)

Overview: Everpure is a Santa Clara based data storage company that builds all flash hardware and software to manage, protect, and move data for enterprises across on premises, cloud, and hybrid environments, with offerings spanning Purity powered arrays, FlashBlade systems for unstructured data, and cloud native Portworx Kubernetes storage.

Operations: Everpure generates about US$3.94b in revenue entirely from computer storage devices, with roughly US$2.67b coming from the United States and US$1.26b from the rest of the world.

Market Cap: US$23.52b

Everpure stands out in the screener because it blends a differentiated storage architecture and AI focused data platform with rapid earnings growth and improving profitability. Yet the stock is still assessed as trading well below some fair value estimates. The business is tightly linked to AI infrastructure and data governance through products like Purity, FlashBlade, Portworx, and recent Data Stream and Data Intelligence launches. Partnerships with Veeam and Red Hat OpenShift broaden its reach. At the same time, a very high P/E and funding that relies on external borrowing put valuation and balance sheet risk on the table, and recent insider selling plus activist interest from Jana Partners add another layer of uncertainty that investors need to weigh carefully.

Everpure’s AI focused storage story appears centered on growth, but the real tension is how that outlook compares with valuation and funding pressure. Walk through the 4 key rewards and 1 important warning sign

The three stocks in this article are only a starting point, and the full High Quality Undervalued Stocks screener has surfaced 46 more companies that pair solid cash flows and strong balance sheets with similarly compelling storylines in waiting, all inside the High Quality Undervalued Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter most to you so you can focus on the highest conviction opportunities instead of sifting through noise.

Take Control of Your Investment Journey

If TTM Technologies 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.