3 Undervalued U.S. Stocks Poised for Growth Amid Market Volatility

As market volatility persists, investors are seeking resilient companies with strong cash flows, discounted valuations, and growth catalysts. Three U.S. stocks—Victory Capital Holdings (VCTR), Inspire Medical Systems (INSP), and V.F. Corporation (VFC)—stand out for their undervalued status, robust earnings growth forecasts, and strategic advantages. Below is a deep dive into their financial health, risks, and growth potential.

Victory Capital Holdings (VCTR): ETF Growth and Synergies Power Valuation Appeal

Current Price: $62.76 (June 20, 2025)
Estimated Fair Value: $71.81 (12.7% undervalued)

Victory Capital, a leader in asset management, is benefiting from its 2025 acquisition of Amundi, a European asset manager. The merger created a combined firm with $286 billion in assets under management (AUM), doubling its fixed-income exposure to 28% of total assets. Key metrics:
- Q1 2025 Adjusted EPS: $1.36 (second-highest in company history).
- ETF AUM Growth: Up 67% YoY to $13 billion.
- Debt: Net leverage ratio of 1.7x, manageable given its $176 million cash reserves.

Growth Drivers:
- The Amundi deal's $50 million in realized synergies (out of $110 million target) boosts margins.
- Gross sales rose 41% QoQ to $9.3 billion in Q1 2025.

Risks:
- Integration costs could temporarily compress margins.
- Two $2.7 billion redemptions in Q1 2025 highlight liquidity risks.

Investment Thesis: VCTR's discounted valuation and ETF-driven growth make it a compelling buy. Long-term synergies and cash flow stability outweigh near-term volatility.

Inspire Medical Systems (INSP): Medical Tech Innovation with Strong Cash Flows

Current Price: $129.70 (June 2025)
Estimated Fair Value: $226.95 (42.9% undervalued)

Inspire Medical, a leader in sleep apnea therapy, is scaling rapidly. Its Inspire V system and international expansion (163% Q4 2024 revenue growth in foreign markets) are key growth levers. Key metrics:
- 2024 Revenue: $802.8 million (+28% YoY).
- Operating Cash Flow: $130.2 million in 2024, with $516.5 million in total cash.
- 2025 Guidance: Revenue of $940–$955 million (+17%–19% YoY).

Growth Drivers:
- A $75 million share repurchase program signals confidence.
- 90,000+ patients treated by late 2024 highlight demand.

Risks:
- Regulatory approvals for new markets could delay.
- High valuation sensitivity to missed growth targets.

Investment Thesis: INSP's undervaluation, robust cash flows, and exponential growth in a critical health-tech niche make it a high-reward buy for investors with a 3–5 year horizon.

V.F. Corporation (VFC): Turnaround Potential in Outdoor Apparel

Current Price: $11.76 (June 2025)
Estimated Fair Value: $13.83 (15% undervalued)

V.F. Corporation, owner of The North Face and Vans, is undergoing a strategic turnaround. Despite a 6% YoY revenue decline in Q2 2025, its debt reduction and brand focus offer hope. Key metrics:
- Q2 2025 Net Debt: $5.7 billion (down $446 million YoY).
- Supreme Sale Proceeds: $1.475 billion reduced leverage and funded reinvestment.
- Operating Margin: 9.9%, with reinvestment costs weighing on adjusted margins.

Growth Drivers:
- Reinvent Program: Aims for $300 million in annual savings by 2025.
- Americas Turnaround: Vans' sequential improvement signals operational progress.

Risks:
- High debt remains a burden despite improvements.
- Slow revenue recovery in key brands like Vans and Timberland.

Investment Thesis: VFC's 15% discount and outdoor-apparel dominance offer a speculative play. Investors must weigh its debt risks against its brand strength and cash flow stabilization.

Conclusion: A Balanced Portfolio Play

Company	Discount to Fair Value	Key Risk	Growth Catalyst
VCTR	12.7%	Integration costs	ETF AUM growth
INSP	42.9%	Regulatory delays	Global market expansion
VFC	15%	High debt	Brand reinvention

Actionable Advice:
- Buy VCTR for steady growth and undervaluation.
- Hold INSP for high-risk, high-reward potential.
- Watch VFC for signs of turnaround, but proceed cautiously due to debt.

Market volatility creates opportunities for investors who prioritize cash flow, valuation discounts, and strategic execution. These three stocks exemplify sectors primed for growth—asset management, medical tech, and premium apparel—making them worth considering in a diversified portfolio.