As the U.S. stock market experiences a surge amid reports of potential tariff adjustments, investors are keenly observing opportunities that may arise from these developments. In this fluctuating environment, identifying stocks estimated to be trading at a discount can offer potential value for those looking to capitalize on market inefficiencies.

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'll examine a selection from our screener results.

Waystar Holding

Overview: Waystar Holding Corp. provides a cloud-based software solution for healthcare payments and has a market cap of approximately $6.45 billion.

Operations: Waystar Holding Corp. generates revenue primarily through its healthcare software segment, which accounts for $943.55 million.

Estimated Discount To Fair Value: 28.2%

Waystar Holding is trading at US$37.48, significantly below its estimated fair value of US$52.19, indicating potential undervaluation based on discounted cash flow analysis. The company recently launched the Auth Accelerate solution to streamline prior authorization processes, enhancing operational efficiency and reducing healthcare administrative burdens. Additionally, Waystar's revenue grew by 19.3% last year with expectations for continued profitability growth above market averages over the next three years.

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

GeneDx Holdings

Overview: GeneDx Holdings Corp. is a genomics company that provides genetic testing services and has a market cap of approximately $2.93 billion.

Operations: The company generates revenue through its Gene Dx segment, contributing $302.29 million, and its Legacy Sema4 segment, which adds $3.16 million.

Estimated Discount To Fair Value: 25.2%

GeneDx Holdings, trading at US$104.39, is considered undervalued with an estimated fair value of US$139.61 based on discounted cash flow analysis. Recent initiatives include the launch of Multiscore, an AI-powered tool enhancing genetic diagnostics efficiency and expanding testing for cerebral palsy patients. Despite past volatility in share price, GeneDx's revenue is expected to grow faster than the market average, with forecasts indicating profitability within three years.

• Insights from our recent growth report point to a promising forecast for GeneDx Holdings' business outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of GeneDx Holdings.

Dayforce

Overview: Dayforce Inc. is a human capital management (HCM) software company operating in the United States, Canada, Australia, and internationally, with a market cap of $9.26 billion.

Operations: The company generates revenue primarily from its Human Capital Management (HCM) segment, totaling $1.76 billion.

Estimated Discount To Fair Value: 25.2%

Dayforce, trading at US$58.5, is undervalued with a fair value estimate of US$78.18 based on discounted cash flow analysis. Despite a decline in net profit margin from 3.6% to 1%, revenue growth outpaces the market, forecasted at 10.6% annually. Earnings are expected to grow significantly by 35.9% per year over the next three years, supported by strategic partnerships like VidCruiter and improved credit terms reducing interest expenses through recent refinancing efforts.

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

Make It Happen

• Discover the full array of 195 Undervalued US Stocks Based On Cash Flows right here.
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Contemplating Other Strategies?

• 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:WAY NasdaqGS:WGS and NYSE:DAY.

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