Top 10 Undervalued Stocks Globally Based on Cash Flows for July 2025

Several global stocks are estimated to be undervalued in July 2025, with potential for growth and a cushion against market volatility. The top 10 undervalued stocks based on cash flows include Xi'an NovaStar Tech, Talenom Oyj, Logic Instrument, JOST Werke, Insource, GEM, Forum Engineering, Echo Investment, cyan, and BHG Group. Grupo Aeroportuario del Pacífico and Xiamen Amoytop Biotech are also highlighted, with the former trading at a 10.3% discount to its estimated fair value.

Several global stocks are estimated to be undervalued in July 2025, presenting potential opportunities for investors seeking growth and resilience against market volatility. A recent analysis by Simply Wall St identified the top 10 undervalued stocks based on cash flows, including Xi'an NovaStar Tech, Talenom Oyj, Logic Instrument, JOST Werke, Insource, GEM, Forum Engineering, Echo Investment, cyan, and BHG Group. Additionally, Grupo Aeroportuario del Pacífico and Xiamen Amoytop Biotech are highlighted, with the former trading at a 10.3% discount to its estimated fair value.

Among the top picks, Atlassian Corporation stands out with a market cap of $53.29 billion and a 22.8% discount to its estimated fair value of $261.41. Despite a recent net loss, Atlassian's revenue grew significantly, and earnings are expected to grow over the next three years, with a projected return on equity of 41.2%.

TMC the metals company Inc., a deep-sea minerals exploration company, is also undervalued, trading at $7.45, slightly below its fair value estimate of $8.48. TMC focuses on the exploration and refinement of polymetallic nodules sourced from the ocean floor in California. The company is projected to become profitable within three years, with a high return on equity.

Comfort Systems USA, Inc., offering mechanical and electrical services across the United States, is another notable pick with a market cap of approximately $24.25 billion. The company is trading at $692.97, well below its fair value estimate of $1,190.33. Recent earnings showed significant growth, with net income rising to $230.85 million from $134.01 million a year ago. The company increased its quarterly dividend and expanded its share buyback plan, reflecting strong financial health and shareholder return focus.

Jenoptik AG (ETR:JEN), a German company specializing in optical systems and components, is estimated to be 47% undervalued based on its current share price of €19.34. The company's estimated fair value is €36.29 based on a two-stage free cash flow to equity model. The analysis suggests that Jenoptik's share price does not fully reflect its intrinsic value.

Investors should consider these undervalued stocks as potential opportunities for growth and resilience against market volatility. However, it is essential to conduct thorough research and consider individual investment objectives and risk tolerance before making any investment decisions.

References:

[1] https://finance.yahoo.com/news/three-stocks-may-undervalued-july-113800960.html

[2] https://www.investing.com/news/earnings/croda-shares-fall-on-weaker-cash-flow-despite-inline-profit-reaffirmed-outlook-4156701

[3] https://finance.yahoo.com/news/opportunity-jenoptik-ags-etr-jen-093335145.html