As the United States stock market continues to rally, with the S&P 500 and Nasdaq reaching new highs, investors are closely watching developments in trade talks and budget bill discussions. In this environment of optimism, identifying stocks that may be trading below their estimated value can present unique opportunities for those looking to capitalize on potential market inefficiencies.

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

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

We'll examine a selection from our screener results.

Burford Capital

Overview: Burford Capital Limited operates globally, offering legal finance products and services, with a market capitalization of approximately $2.56 billion.

Operations: The company's revenue segments include Principal Finance generating $97.81 million and Asset Management and Other Services contributing $54.37 million.

Estimated Discount To Fair Value: 32%

Burford Capital appears undervalued, trading at US$11.69, which is 32% below the estimated fair value of US$17.19. The company's recent addition to multiple Russell indices may improve visibility and liquidity. With earnings forecasted to grow significantly at 28.8% annually, Burford demonstrates strong potential for profit growth compared to the broader market's 14.6%. However, its return on equity is expected to remain low at 10.8% in three years.

• In light of our recent growth report, it seems possible that Burford Capital's financial performance will exceed current levels.
• Unlock comprehensive insights into our analysis of Burford Capital stock in this financial health report.

Genius Sports

Overview: Genius Sports Limited develops and sells technology-driven products and services for the sports, sports betting, and sports media sectors, with a market cap of approximately $2.44 billion.

Operations: The company generates revenue from its data processing segment, amounting to $535.17 million.

Estimated Discount To Fair Value: 34.3%

Genius Sports is trading at US$10.38, significantly below its estimated fair value of US$15.8, suggesting undervaluation based on cash flows. The company's recent inclusion in several Russell indices may enhance market visibility and liquidity. Despite current losses, Genius Sports' earnings are projected to grow rapidly, potentially becoming profitable within three years. However, its future return on equity is expected to remain low at 4.4%, which could impact long-term investor returns despite strong revenue growth forecasts and strategic partnerships with major sports leagues like the NFL and NCAA.

• Our expertly prepared growth report on Genius Sports implies its future financial outlook may be stronger than recent results.
• Delve into the full analysis health report here for a deeper understanding of Genius Sports.

ATRenew

Overview: ATRenew Inc. operates a platform for pre-owned consumer electronics transactions and services in China, with a market cap of approximately $779.36 million.

Operations: The company's revenue is primarily derived from its retail electronics segment, generating CN¥17.33 billion.

Estimated Discount To Fair Value: 48.2%

ATRenew, trading at $3.49, is considerably undervalued with an estimated fair value of $6.74 based on discounted cash flow analysis. The company recently announced a $50 million share repurchase program funded by existing cash reserves, potentially enhancing shareholder value. Having turned profitable this year with net income of CNY 42.8 million for Q1 2025, ATRenew's earnings are projected to grow significantly at 81.8% annually, surpassing both revenue and profit growth expectations in the US market.

• The analysis detailed in our ATRenew growth report hints at robust future financial performance.
• Dive into the specifics of ATRenew here with our thorough financial health report.

Seize The Opportunity

• Investigate our full lineup of 173 Undervalued US Stocks Based On Cash Flows right here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Searching for a Fresh Perspective?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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 BUR GENI and RERE.

This article was originally published by Simply Wall St.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com