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Three Stocks That May Be Trading Below Estimated Value In June 2025

Simply Wall St·06/10/2025 17:08:03
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As the United States market continues to navigate the complexities of US-China trade talks, major indices like the S&P 500 and Nasdaq Composite have reached their highest levels since February. In this environment, identifying stocks that may be trading below their estimated value can present opportunities for investors looking to capitalize on potential market inefficiencies.

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

Name Current Price Fair Value (Est) Discount (Est)
Verra Mobility (VRRM) $24.14 $47.84 49.5%
TXO Partners (TXO) $15.03 $29.95 49.8%
TAL Education Group (TAL) $10.83 $21.61 49.9%
Reddit (RDDT) $117.53 $229.23 48.7%
Mid Penn Bancorp (MPB) $26.64 $52.26 49%
Lyft (LYFT) $15.63 $30.54 48.8%
Insteel Industries (IIIN) $36.31 $72.06 49.6%
First Busey (BUSE) $22.82 $45.56 49.9%
Brookline Bancorp (BRKL) $10.52 $20.74 49.3%
Berkshire Hills Bancorp (BHLB) $25.19 $49.25 48.9%

Click here to see the full list of 169 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Enphase Energy (ENPH)

Overview: Enphase Energy, Inc. designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry globally, with a market cap of approximately $5.40 billion.

Operations: The company generates revenue of $1.42 billion from designing, manufacturing, and selling solutions for the solar photovoltaic industry.

Estimated Discount To Fair Value: 28.5%

Enphase Energy's stock appears undervalued, trading at US$43.26 against a fair value estimate of US$60.52, based on discounted cash flow analysis. Despite a decline in profit margins from 15.1% to 10.4%, earnings are projected to grow significantly at 24.16% annually, outpacing the broader U.S. market growth rate of 14.4%. Recent projects in the U.S., such as large-scale solar installations using Enphase microinverters, highlight strong demand and potential for enhanced cash flows through domestic content tax credits and energy cost savings initiatives.

ENPH Discounted Cash Flow as at Jun 2025
ENPH Discounted Cash Flow as at Jun 2025

Bruker (BRKR)

Overview: Bruker Corporation, with a market cap of $5.80 billion, develops, manufactures, and distributes scientific instruments and analytical and diagnostic solutions globally.

Operations: The company's revenue is primarily derived from its BSI CALID segment at $1.15 billion, followed by BSI Nano at $1.11 billion, BSI BioSpin at $930.70 million, and BEST at $269.20 million.

Estimated Discount To Fair Value: 12.4%

Bruker is trading at US$39.21, below its fair value estimate of US$44.76, suggesting potential undervaluation based on cash flows. Although its revenue growth forecast of 4.7% annually lags behind the U.S. market, Bruker's earnings are expected to grow significantly at 45.5% per year, surpassing market averages. Recent innovations in mass spectrometry and proteomics enhance its product offerings, potentially boosting future cash flows despite current challenges with profit margins and legal settlements impacting financials.

BRKR Discounted Cash Flow as at Jun 2025
BRKR Discounted Cash Flow as at Jun 2025

Texas Capital Bancshares (TCBI)

Overview: Texas Capital Bancshares, Inc., the bank holding company for Texas Capital Bank, is a full-service financial services firm offering tailored solutions to businesses, entrepreneurs, and individual clients with a market cap of approximately $3.49 billion.

Operations: The company's revenue is primarily derived from its banking segment, which generated approximately $891.50 million.

Estimated Discount To Fair Value: 33.8%

Texas Capital Bancshares, trading at US$77.96, is below its fair value estimate of US$117.71, indicating undervaluation based on cash flows. Revenue and earnings are projected to grow at 17.4% and 44.2% annually, respectively, outpacing the U.S. market averages. However, profit margins have declined from last year’s figures of 16% to 9.1%. Recent strategic board appointments and product integrations aim to enhance operational efficiency and strengthen financial performance amidst buybacks and net charge-offs adjustments.

TCBI Discounted Cash Flow as at Jun 2025
TCBI Discounted Cash Flow as at Jun 2025

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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.