As the U.S. stock market faces turbulence due to impending auto tariffs and a tech sector selloff, investors are increasingly vigilant about identifying opportunities amid uncertainty. In this climate, undervalued stocks—those priced below their estimated intrinsic value—can offer potential for growth as they may be overlooked by the broader market sentiment.

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.

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

Alkami Technology

Overview: Alkami Technology, Inc. offers cloud-based digital banking solutions in the United States and has a market capitalization of approximately $2.82 billion.

Operations: Alkami Technology generates revenue primarily from its Internet Software & Services segment, totaling $333.85 million.

Estimated Discount To Fair Value: 23.7%

Alkami Technology is trading at US$27.48, below its estimated fair value of US$36.02, suggesting it may be undervalued based on cash flows. Recent partnerships with Greenlight and American Eagle Financial Credit Union enhance its digital banking platform offerings, potentially boosting revenue growth forecasted at 20% annually—significantly above the market average. Despite recent insider selling, Alkami's strategic collaborations and expected profitability within three years highlight its potential for investors focused on cash flow valuation.

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

nCino

Overview: nCino, Inc. is a software-as-a-service company that offers cloud-based software applications to financial institutions globally and has a market cap of approximately $3.40 billion.

Operations: The company generates revenue primarily from its Software & Programming segment, which amounted to $522.98 million.

Estimated Discount To Fair Value: 11.8%

nCino is currently trading at US$29.73, below its estimated fair value of US$33.71, indicating potential undervaluation based on cash flows. The company anticipates high earnings growth of over 100% annually and expects to become profitable within three years, surpassing market averages. Recent board changes include appointing Sean Desmond as CEO and Justin Nyweide to the Board, reflecting strategic alignment with major shareholder HMI Capital despite recent insider selling activity.

• Our expertly prepared growth report on nCino implies its future financial outlook may be stronger than recent results.
• Get an in-depth perspective on nCino's balance sheet by reading our health report here.

Chipotle Mexican Grill

Overview: Chipotle Mexican Grill, Inc., along with its subsidiaries, owns and operates a chain of Chipotle Mexican Grill restaurants and has a market cap of $67.10 billion.

Operations: The company's revenue is primarily generated from its restaurant operations, totaling $11.31 billion.

Estimated Discount To Fair Value: 13.8%

Chipotle Mexican Grill is trading at US$50.07, below its fair value estimate of US$58.09, indicating potential undervaluation based on cash flows. Despite modest insider selling, the company has shown strong financial performance with revenue reaching US$11.31 billion and net income at US$1.53 billion for 2024. Earnings are expected to grow annually by 14%, outpacing the broader market, while recent share repurchase programs highlight management's confidence in future prospects.

• The growth report we've compiled suggests that Chipotle Mexican Grill's future prospects could be on the up.
• Dive into the specifics of Chipotle Mexican Grill here with our thorough financial health report.

Seize The Opportunity

• Gain an insight into the universe of 195 Undervalued US Stocks Based On Cash Flows by clicking here.
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Curious About Other Options?

• 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 NasdaqGS:ALKT NasdaqGS:NCNO and NYSE:CMG.

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