Top 10 Undervalued Stocks in the US Based on Cash Flows in May 2025

The article highlights 10 undervalued stocks in the US, with companies like MINISO Group Holding, ConnectOne Bancorp, and Lantheus Holdings showing potential value. The stocks appear to be priced below their estimated worth, offering opportunities amidst fluctuating economic conditions. The article also mentions Waystar Holding Corp., which is undervalued with a fair value estimate of US$47.43, offering potential upside.

The United States market has experienced a significant uptick, rising by 7.1% over the last 7 days and 7.7% over the past year, with anticipated earnings growth of 14% per annum [1]. This robust performance has led investors to seek out stocks trading below their estimated fair value, presenting potential opportunities for capitalizing on future growth prospects. Among the top undervalued stocks in the US, several companies stand out, including BeiGene, Roku, and Wix.com.

BeiGene Ltd. is an oncology company with a market cap of approximately $26.39 billion. The company generates revenue primarily from pharmaceutical products, totaling $3.81 billion. Despite reporting a net loss of $644.79 million in 2024, BeiGene's stock is trading significantly below its estimated fair value, offering a potential opportunity for investors focused on cash flow valuation. The company expects revenue growth to between $4.9 billion and $5.3 billion in 2025, bolstered by strategic alliances and product approvals such as TEVIMBRA's approval for ESCC treatment [1].

Roku Inc. operates a TV streaming platform both in the US and internationally, with a market cap of approximately $9.59 billion. The company generates revenue through its Devices and Platform segments, with the Platform segment contributing $3.52 billion. Despite recent net losses, Roku's stock trades at $68.14, significantly below its estimated fair value of $135.48, highlighting potential undervaluation based on cash flows. The company's earnings are forecast to grow substantially over the next three years, with expectations of profitability, surpassing average market growth rates. Recent product innovations and partnerships like Monster Jam enhance its platform offerings, potentially strengthening future cash flow prospects as it expands globally in streaming and device markets [1].

Wix.com Ltd. operates a cloud-based web development platform for registered users and creators globally, with a market cap of approximately $9.30 billion. The company generates revenue from its Internet Software & Services segment, totaling $1.76 billion. Wix.com's stock is undervalued compared to its estimated fair value of $204.68, trading at $164.78. Despite high debt levels, the company's earnings are expected to grow significantly by 27.2% annually over the next three years, outpacing the broader U.S. market's growth rate. Recent AI-powered product launches like Astro and adaptive content applications aim to enhance user engagement and operational efficiency, potentially boosting future cash flows alongside a strong projected return on equity of 65.8% [1].

Qualcomm Inc. (NASDAQ: QCOM) added more than 1% in Wednesday’s session, continuing its rebound from multi-year lows earlier this month. The stock has now rallied more than 20% in just three weeks, as optimism built heading into the company’s Q2 earnings report last night. Despite topping analyst expectations on both revenue and earnings and issuing forward guidance that was solid by most measures, shares dropped more than 5% in the pre-market session. This reaction highlights the market's cautious sentiment towards the company, despite its strong earnings and valuation metrics. Qualcomm's earnings for the quarter ending March 30 came in well ahead of expectations, with the company reporting non-GAAP EPS of $2.85, beating consensus by $0.04 and revenue of $10.98 billion, which topped expectations by $330 million and was up nearly 17% year over year [2].

Conclusion

Investors seeking undervalued stocks in the US should consider companies like BeiGene, Roku, and Wix.com, which offer potential value opportunities amidst fluctuating economic conditions. Additionally, Qualcomm Inc. presents an intriguing value play in the tech sector, despite the market's cautious reaction to its strong earnings report. As always, investors should conduct thorough research and consider their individual financial situations before making investment decisions.

References

[1] https://finance.yahoo.com/news/3-stocks-could-trading-below-113748231.html

[2] https://www.inkl.com/news/qualcomm-s-earnings-2-reasons-to-buy-1-to-stay-away