As the U.S. stock market navigates the complexities of trade tensions and regulatory changes, major indices like the Dow Jones and Nasdaq have experienced notable declines, particularly with technology stocks leading recent sell-offs. In this environment of uncertainty, identifying undervalued stocks becomes crucial for investors seeking potential opportunities, as these equities may offer value relative to their intrinsic worth despite prevailing market challenges.

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

Click here to see the full list of 178 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Datadog

Overview: Datadog, Inc. provides an observability and security platform for cloud applications worldwide and has a market cap of approximately $31.49 billion.

Operations: The company's revenue is primarily derived from its IT Infrastructure segment, which generated $2.68 billion.

Estimated Discount To Fair Value: 48.4%

Datadog, trading at US$92.55, is significantly undervalued based on discounted cash flow analysis with a fair value estimate of US$179.22. Recent earnings show robust growth with annual sales reaching US$2.68 billion and net income rising to US$183.75 million from the previous year’s US$48.57 million. The partnership with Chainguard enhances security offerings, potentially boosting future cash flows as Datadog's revenue is projected to grow faster than the broader market at 15.2% annually.

• In light of our recent growth report, it seems possible that Datadog's financial performance will exceed current levels.
• Click here to discover the nuances of Datadog with our detailed financial health report.

Natera

Overview: Natera, Inc. is a diagnostics company that offers molecular testing services globally, with a market cap of approximately $20.07 billion.

Operations: The company's revenue is primarily derived from the development and commercialization of molecular testing services, amounting to $1.70 billion.

Estimated Discount To Fair Value: 13.5%

Natera, trading at US$151.74, is undervalued with a fair value estimate of US$175.41. The company reported revenue of US$1.70 billion for 2024, up from US$1.08 billion the previous year, and reduced its net loss significantly to US$190.43 million from US$434.8 million. Despite recent insider selling, Natera's innovative Signatera test has expanded Medicare coverage and clinical validation in cancer detection and monitoring could support future cash flow growth as profitability is anticipated within three years.

• The analysis detailed in our Natera growth report hints at robust future financial performance.
• Take a closer look at Natera's balance sheet health here in our report.

Corpay

Overview: Corpay, Inc. is a payments company that facilitates the management of vehicle-related expenses, lodging expenses, and corporate payments for businesses and consumers across the United States, Brazil, the United Kingdom, and internationally; it has a market cap of approximately $21.67 billion.

Operations: Corpay's revenue is primarily derived from vehicle payments ($2.01 billion), corporate payments ($1.22 billion), and lodging payments ($488.59 million).

Estimated Discount To Fair Value: 42.6%

Corpay, trading at US$312.84, is significantly undervalued with a fair value estimate of US$545.11. The company's recent Luxembourg expansion aligns with its strategy to enhance its presence in key financial markets and supports growth ambitions in institutional investments. Despite high debt levels, Corpay's earnings are forecasted to grow 15.5% annually, outpacing the broader U.S. market's expected growth rate of 13.5%, enhancing its potential for strong cash flow generation.

• Our growth report here indicates Corpay may be poised for an improving outlook.
• Click to explore a detailed breakdown of our findings in Corpay's balance sheet health report.

Where To Now?

• Unlock our comprehensive list of 178 Undervalued US Stocks Based On Cash Flows by clicking here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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Searching for a Fresh Perspective?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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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:DDOG NasdaqGS:NTRA and NYSE:CPAY.

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