Over the last 7 days, the United States market has risen by 5.8%, contributing to a 4.8% climb over the past year, with earnings forecasted to grow by 14% annually. In this environment of growth, identifying stocks that may be trading below their estimated value can offer potential opportunities for investors looking to capitalize on undervalued assets.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Click here to see the full list of 174 stocks from our Undervalued US Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Synopsys

Overview: Synopsys, Inc. is a company that provides electronic design automation software products for designing and testing integrated circuits, with a market cap of approximately $65.13 billion.

Operations: The company's revenue segments include Design IP, generating approximately $1.82 billion, and Design Automation, contributing around $4.26 billion.

Estimated Discount To Fair Value: 18.4%

Synopsys, Inc. is trading at US$421.21, below its estimated fair value of US$516.2, suggesting it may be undervalued based on cash flows despite recent insider selling. The company anticipates earnings growth of 16.21% annually and revenue growth of 11.8%, both outpacing the broader U.S. market projections. Recent collaborations with NVIDIA highlight Synopsys's focus on innovation in chip design acceleration, potentially enhancing future cash flow generation capabilities amidst its strategic debt financing activities for acquisitions like ANSYS, Inc.

• Insights from our recent growth report point to a promising forecast for Synopsys' business outlook.
• Click to explore a detailed breakdown of our findings in Synopsys' balance sheet health report.

GE Vernova

Overview: GE Vernova Inc. is an energy company that provides products and services for generating, transferring, orchestrating, converting, and storing electricity across multiple regions including the United States, Europe, Asia, the Americas, the Middle East, and Africa with a market cap of $87.86 billion.

Operations: The company's revenue segments include Wind at $9.70 billion, Power at $18.13 billion, and Electrification at $7.55 billion.

Estimated Discount To Fair Value: 17.3%

GE Vernova, trading at US$321.43, is undervalued compared to its estimated fair value of US$388.84, with analysts forecasting a 24.8% stock price increase. Despite high share price volatility and slower revenue growth than the U.S. market, its earnings are expected to grow significantly at 25.7% annually over the next three years—outpacing market expectations—driven by strategic collaborations like AnterixAccelerator for digital grid transformation and RWE's wind projects utilizing GE Vernova technology in Texas.

• The analysis detailed in our GE Vernova growth report hints at robust future financial performance.
• Navigate through the intricacies of GE Vernova with our comprehensive financial health report here.

Eli Lilly

Overview: Eli Lilly and Company discovers, develops, and markets human pharmaceuticals globally with a market cap of approximately $657.70 billion.

Operations: The company generates revenue primarily through the discovery, development, manufacturing, marketing, and sales of pharmaceutical products, amounting to $45.04 billion.

Estimated Discount To Fair Value: 39%

Eli Lilly, trading at US$732.41, is undervalued with a fair value estimate of US$1,199.85 and expected stock price growth of 38%. Its earnings are forecast to grow significantly at 21.8% per year over the next three years, outpacing the U.S. market's 13.5%. Recent positive Phase 2 results for lepodisiran and strategic expansions in digital healthcare for Alzheimer's support its growth potential despite high debt levels and reliance on non-cash earnings.

• Our earnings growth report unveils the potential for significant increases in Eli Lilly's future results.
• Dive into the specifics of Eli Lilly here with our thorough financial health report.

Turning Ideas Into Actions

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Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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:SNPS NYSE:GEV and NYSE:LLY.

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