As the U.S. stock market faces a turbulent period with major indices like the Dow Jones and S&P 500 on track for their worst week in two years, concerns about tariffs and economic health continue to dominate investor sentiment. In such uncertain times, identifying stocks that are trading below their intrinsic value can offer potential opportunities for investors looking to navigate these challenging conditions.

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

Click here to see the full list of 194 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Ligand Pharmaceuticals

Overview: Ligand Pharmaceuticals Incorporated is a biopharmaceutical company focused on developing and licensing biopharmaceutical assets globally, with a market cap of approximately $2.22 billion.

Operations: The company's revenue segment is primarily derived from the development and licensing of biopharmaceutical assets, totaling $167.13 million.

Estimated Discount To Fair Value: 47.5%

Ligand Pharmaceuticals is trading significantly below its fair value estimate of US$220.76, with a current price of US$116, suggesting it may be undervalued based on cash flows. Despite recent financial challenges, including a net loss of US$4.03 million for 2024 and substantial insider selling, the company expects revenue growth between US$180 million to US$200 million in 2025. Analysts forecast profitability within three years, indicating potential future value realization.

• Our earnings growth report unveils the potential for significant increases in Ligand Pharmaceuticals' future results.
• Dive into the specifics of Ligand Pharmaceuticals here with our thorough financial health report.

CNX Resources

Overview: CNX Resources Corporation is an independent natural gas and midstream company focused on acquiring, exploring, developing, and producing natural gas properties in the Appalachian Basin with a market cap of approximately $4.41 billion.

Operations: The company's revenue segments include Shale, generating approximately $1.15 billion, and Coalbed Methane, contributing $105.12 million.

Estimated Discount To Fair Value: 44.6%

CNX Resources, trading at US$28.82, is valued below its estimated fair value of US$52.02, highlighting potential undervaluation based on cash flows. Despite a net loss of US$90.49 million in 2024 and interest payments not fully covered by earnings, revenue is projected to grow at 27.9% annually—surpassing the market average. The company aims for profitability within three years and has secured a $200 million debt placement to support strategic acquisitions and reduce existing debt obligations.

• Insights from our recent growth report point to a promising forecast for CNX Resources' business outlook.
• Take a closer look at CNX Resources' balance sheet health here in our report.

Dingdong (Cayman)

Overview: Dingdong (Cayman) Limited operates as an e-commerce company in China with a market cap of $682.39 million.

Operations: The company's revenue primarily comes from its online retail operations, amounting to CN¥22.15 billion.

Estimated Discount To Fair Value: 28.4%

Dingdong (Cayman) is trading at CNY 3.56, below its estimated fair value of CNY 4.97, suggesting undervaluation based on cash flows. Recent earnings show a shift to profitability with a net income of CNY 89.18 million for Q4 2024. Earnings are projected to grow significantly at an annual rate of 38.3%, outpacing the US market average, while revenue growth is forecasted at 9.1% annually, supported by a $20 million share buyback program funded from existing cash reserves.

• The growth report we've compiled suggests that Dingdong (Cayman)'s future prospects could be on the up.
• Delve into the full analysis health report here for a deeper understanding of Dingdong (Cayman).

Turning Ideas Into Actions

• Delve into our full catalog of 194 Undervalued US Stocks Based On Cash Flows here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Want To Explore Some Alternatives?

• 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 NasdaqGM:LGND NYSE:CNX and NYSE:DDL.

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