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3 Stocks Possibly Trading At Discounts Ranging From 10.4% To 20.2%

Simply Wall St·12/31/2025 11:07:42
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As the United States stock market experiences a slight downturn with major indexes closing lower for the third consecutive session, investors are keenly observing opportunities amidst fluctuating conditions. In such an environment, identifying stocks that may be undervalued can present potential advantages, especially when these stocks are trading at discounts ranging from 10.4% to 20.2%.

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

Name Current Price Fair Value (Est) Discount (Est)
WidePoint (WYY) $5.51 $10.78 48.9%
Valley National Bancorp (VLY) $11.775 $23.04 48.9%
SmartStop Self Storage REIT (SMA) $31.38 $61.29 48.8%
Perfect (PERF) $1.76 $3.43 48.7%
Nicolet Bankshares (NIC) $122.02 $242.21 49.6%
Investar Holding (ISTR) $26.90 $52.60 48.9%
Horizon Bancorp (HBNC) $17.04 $33.87 49.7%
Fifth Third Bancorp (FITB) $47.53 $93.81 49.3%
Dime Community Bancshares (DCOM) $30.42 $60.09 49.4%
Clearfield (CLFD) $29.42 $58.41 49.6%

Click here to see the full list of 192 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's uncover some gems from our specialized screener.

Li Auto (LI)

Overview: Li Auto Inc. operates in the energy vehicle market in the People's Republic of China with a market capitalization of approximately $17.43 billion.

Operations: The company generates revenue primarily from its Auto Manufacturers segment, amounting to CN¥127.81 billion.

Estimated Discount To Fair Value: 20.2%

Li Auto is trading below its estimated fair value, presenting potential undervaluation based on cash flows. Despite a significant profit margin decline from 7.2% to 3.6%, the company's earnings are expected to grow significantly over the next three years, outpacing the broader US market. However, recent quarterly results show a net loss of CNY 624.98 million and decreased revenue compared to last year, alongside insider selling activity in recent months.

LI Discounted Cash Flow as at Dec 2025
LI Discounted Cash Flow as at Dec 2025

Pure Storage (PSTG)

Overview: Pure Storage, Inc. is a company that offers data storage and management technologies, products, and services both in the United States and internationally, with a market cap of approximately $22.59 billion.

Operations: The company's revenue is derived from its computer storage devices segment, which generated $3.48 billion.

Estimated Discount To Fair Value: 10.6%

Pure Storage is trading at US$67.79, slightly below its estimated fair value of US$75.8, suggesting potential undervaluation based on cash flows. The company forecasts robust earnings growth of 35.5% annually, surpassing the broader US market's expectations. Recent buyback activity and increased guidance for fiscal year 2026 reflect management confidence in future performance despite a slight dip in recent quarterly net income compared to last year.

PSTG Discounted Cash Flow as at Dec 2025
PSTG Discounted Cash Flow as at Dec 2025

Rush Street Interactive (RSI)

Overview: Rush Street Interactive, Inc. is an online casino and sports betting company operating in the United States, Canada, and Latin America with a market cap of $4.53 billion.

Operations: The company generates revenue from its online gaming and retail sports betting segment, totaling $1.06 billion.

Estimated Discount To Fair Value: 10.4%

Rush Street Interactive is trading at US$20.11, below its estimated fair value of US$22.43, indicating potential undervaluation based on cash flows. The company forecasts significant earnings growth of 32.3% annually, outpacing the broader US market's expectations. Recent earnings reports show a substantial increase in net income and sales year-over-year, with raised revenue guidance for 2025 reflecting management's confidence despite no recent buyback activity under their repurchase program.

RSI Discounted Cash Flow as at Dec 2025
RSI Discounted Cash Flow as at Dec 2025

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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.