As the U.S. market grapples with the impact of new tariffs and rising inflationary pressures, investors are closely monitoring economic indicators for signs of stability. Amid this uncertainty, identifying undervalued stocks can offer potential opportunities for those looking to navigate these volatile conditions. In such an environment, a good stock might be characterized by strong fundamentals and resilience to external economic shifts, making it potentially attractive despite broader market challenges.

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

Click here to see the full list of 195 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Coastal Financial

Overview: Coastal Financial Corporation, with a market cap of $1.47 billion, operates as the bank holding company for Coastal Community Bank, offering a range of banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington.

Operations: Coastal Community Bank's revenue is primarily derived from its CCBX segment at $192.73 million, followed by the Community Bank segment at $78.94 million, and Treasury & Administration contributing $12.45 million.

Estimated Discount To Fair Value: 38.2%

Coastal Financial is trading at US$100.71, significantly below its estimated fair value of US$162.91, suggesting it is undervalued based on discounted cash flows. Recent earnings show net interest income increased to US$66.52 million from US$59.66 million a year ago, while net income rose to US$13.37 million from US$9.01 million, despite higher net charge-offs of $55.9 million compared to $44.9 million previously reported for the same period last year.

• Our growth report here indicates Coastal Financial may be poised for an improving outlook.
• Take a closer look at Coastal Financial's balance sheet health here in our report.

BWX Technologies

Overview: BWX Technologies, Inc. manufactures and sells nuclear components across the United States, Canada, and internationally with a market cap of approximately $9.51 billion.

Operations: The company generates revenue from two primary segments: Government Operations, contributing $2.18 billion, and Commercial Operations, accounting for $523.97 million.

Estimated Discount To Fair Value: 13.5%

BWX Technologies is trading at US$101.5, below its estimated fair value of US$117.37, highlighting potential undervaluation based on cash flows. Despite high debt levels and significant insider selling recently, earnings are expected to grow 18.4% annually, outpacing the broader U.S. market's forecasted growth rate of 14%. Recent contracts worth billions with the U.S. Navy and Canadian nuclear projects bolster revenue prospects, with 2025 guidance projecting US$3 billion in revenue.

• In light of our recent growth report, it seems possible that BWX Technologies' financial performance will exceed current levels.
• Get an in-depth perspective on BWX Technologies' balance sheet by reading our health report here.

KeyCorp

Overview: KeyCorp, with a market cap of $19.14 billion, operates as the holding company for KeyBank National Association, offering a range of retail and commercial banking products and services in the United States.

Operations: KeyBank National Association's revenue is primarily derived from its Consumer Bank segment, which contributes $3.09 billion, and its Commercial Bank segment, which generates $3.21 billion.

Estimated Discount To Fair Value: 34.2%

KeyCorp is trading at US$16.98, significantly below its estimated fair value of US$25.82, suggesting undervaluation based on cash flows. The company anticipates becoming profitable within three years, with earnings projected to grow 66.38% annually and revenue growth surpassing the U.S. market average at 14.8%. However, recent financials report a net loss of US$161 million for 2024 and ongoing shareholder dilution may concern investors despite future growth prospects.

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

Turning Ideas Into Actions

• Unlock our comprehensive list of 195 Undervalued US Stocks Based On Cash Flows by clicking here.
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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:CCB NYSE:BWXT and NYSE:KEY.

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