Over the last 7 days, the United States market has risen by 5.1%, contributing to an overall increase of 11% over the past year, with earnings expected to grow by 14% annually in the coming years. In this environment of positive momentum and growth prospects, identifying stocks that are potentially undervalued can be a strategic approach for investors looking to capitalize on market opportunities.

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

Name Current Price Fair Value (Est) Discount (Est) Berkshire Hills Bancorp (NYSE:BHLB) $26.56 $51.80 48.7% Valley National Bancorp (NasdaqGS:VLY) $9.17 $18.22 49.7% KBR (NYSE:KBR) $55.66 $108.48 48.7% Horizon Bancorp (NasdaqGS:HBNC) $15.77 $30.71 48.7% Insteel Industries (NYSE:IIIN) $37.01 $72.18 48.7% Bel Fuse (NasdaqGS:BELF.A) $71.85 $143.21 49.8% Shoals Technologies Group (NasdaqGM:SHLS) $6.11 $11.89 48.6% FinWise Bancorp (NasdaqGM:FINW) $14.84 $29.22 49.2% Vertex Pharmaceuticals (NasdaqGS:VRTX) $421.16 $823.12 48.8% Clearfield (NasdaqGM:CLFD) $37.47 $74.54 49.7%

Click here to see the full list of 173 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Advanced Micro Devices

Overview: Advanced Micro Devices, Inc. is a global semiconductor company with a market capitalization of approximately $182.34 billion.

Operations: AMD's revenue is primarily derived from its Data Center segment at $13.92 billion, followed by the Client segment at $7.98 billion, Embedded at $3.53 billion, and Gaming at $2.32 billion.

Estimated Discount To Fair Value: 13.6%

Advanced Micro Devices (AMD) is trading at a discount to its estimated fair value of US$136.27, with a current price of US$117.72, suggesting it may be undervalued based on cash flows. Recent strategic initiatives, including an expanded $14 billion buyback plan and partnerships in AI infrastructure with HUMAIN, bolster its growth prospects. AMD's earnings are forecast to grow significantly faster than the broader U.S. market, highlighting potential for strong future performance despite slower revenue growth projections.

Our expertly prepared growth report on Advanced Micro Devices implies its future financial outlook may be stronger than recent results. Take a closer look at Advanced Micro Devices' balance sheet health here in our report.NasdaqGS:AMD Discounted Cash Flow as at May 2025

Carvana

Overview: Carvana Co. operates an e-commerce platform for buying and selling used cars in the United States, with a market cap of approximately $63.22 billion.

Operations: The company's revenue is primarily derived from its retail segment, specifically gasoline and auto dealers, amounting to $14.84 billion.

Story Continues

Estimated Discount To Fair Value: 48.1%

Carvana is trading at a significant discount to its estimated fair value of US$588.38, with a current price of US$305.52, highlighting potential undervaluation based on cash flows. Recent earnings showed substantial growth, with net income rising to US$216 million from US$28 million year-over-year. Despite volatile share prices and insider selling, Carvana's strategic expansions in reconditioning capacity and forecasted high earnings growth underscore its promising outlook amidst financial challenges.

In light of our recent growth report, it seems possible that Carvana's financial performance will exceed current levels. Click here and access our complete balance sheet health report to understand the dynamics of Carvana.NYSE:CVNA Discounted Cash Flow as at May 2025

Sea

Overview: Sea Limited operates as a consumer internet company through its subsidiaries in Southeast Asia, Latin America, the rest of Asia, and internationally, with a market cap of approximately $96.61 billion.

Operations: Sea Limited generates revenue through its subsidiaries in various regions, with operations spanning Southeast Asia, Latin America, and beyond.

Estimated Discount To Fair Value: 12.9%

Sea Limited's recent earnings report revealed substantial improvement, with net income reaching US$403.05 million from a previous loss, showcasing strong cash flow generation. Trading at US$163.18, it is undervalued compared to the estimated fair value of US$187.42. Earnings are expected to grow significantly at 29.7% annually, outpacing the broader market's growth rate of 14.3%, positioning Sea as a potentially attractive investment despite slower projected revenue growth rates below 20%.

Our comprehensive growth report raises the possibility that Sea is poised for substantial financial growth. Click here to discover the nuances of Sea with our detailed financial health report.NYSE:SE Discounted Cash Flow as at May 2025

Summing It All Up

Click here to access our complete index of 173 Undervalued US Stocks Based On Cash Flows. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

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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.

Companies discussed in this article include NasdaqGS:AMDNYSE:CVNA and NYSE:SE.

This article was originally published by Simply Wall St.

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