As the U.S. stock market kicks off February with significant gains, highlighted by the Dow Jones Industrial Average's 515-point surge and the S&P 500 nearing a record high, investors are keenly observing opportunities amid this bullish sentiment. In such an environment, identifying stocks that may be trading below their fair value can present potential investment opportunities, particularly when considering companies like Autodesk and others that might offer strong fundamentals at attractive prices.
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Unity Software (U) | $29.06 | $56.03 | 48.1% |
| Sprout Social (SPT) | $7.96 | $15.43 | 48.4% |
| Power Solutions International (PSIX) | $83.52 | $160.36 | 47.9% |
| Peraso (PRSO) | $0.8783 | $1.70 | 48.2% |
| Old National Bancorp (ONB) | $25.53 | $50.00 | 48.9% |
| Northwest Bancshares (NWBI) | $13.16 | $25.63 | 48.6% |
| MGM Resorts International (MGM) | $37.36 | $72.49 | 48.5% |
| Intapp (INTA) | $25.54 | $49.32 | 48.2% |
| First Busey (BUSE) | $26.88 | $51.50 | 47.8% |
| Dingdong (Cayman) (DDL) | $2.92 | $5.68 | 48.6% |
Let's review some notable picks from our screened stocks.
Overview: Autodesk, Inc. offers 3D design, engineering, and entertainment technology solutions globally with a market cap of approximately $51.32 billion.
Operations: The company generates revenue primarily from its CAD/CAM software segment, totaling $6.89 billion.
Estimated Discount To Fair Value: 24.6%
Autodesk is trading at US$243.58, below its estimated future cash flow value of US$323.26, suggesting undervaluation based on cash flows. Earnings are expected to grow significantly at 20.4% annually, outpacing the broader market's growth rate of 15.8%. Recent earnings reports show increased revenue and net income compared to the previous year, while a strategic partnership with L&T Technology Services aims to enhance digital transformation capabilities across various industries.
Overview: Ichor Holdings, Ltd. designs, engineers, and manufactures fluid delivery subsystems and components for semiconductor capital equipment globally, with a market cap of approximately $1.17 billion.
Operations: Ichor Holdings generates revenue through its design, engineering, and manufacturing of fluid delivery subsystems and components for semiconductor capital equipment in both domestic and international markets.
Estimated Discount To Fair Value: 35.1%
Ichor Holdings is trading at US$45.27, below its estimated future cash flow value of US$69.71, indicating potential undervaluation based on cash flows. Despite a volatile share price and recent losses, the company forecasts revenue growth of 12% annually, surpassing the broader market's 10.3%. Ichor expects profitability within three years and has provided Q1 2026 guidance with revenue between US$240 million and US$260 million and GAAP diluted LPS of $0.10 to EPS of $0.02.
Overview: XPeng Inc. is a company that designs, develops, manufactures, and markets smart electric vehicles in China with a market cap of approximately $16.75 billion.
Operations: The company generates revenue primarily from its Auto Manufacturers segment, which reported CN¥70.57 billion.
Estimated Discount To Fair Value: 27.6%
XPeng, trading at US$17.82, is priced 27.6% below its estimated future cash flow value of US$24.61, suggesting it could be undervalued based on cash flows. The company anticipates revenue growth of 20.3% annually and profitability within three years, exceeding average market expectations. Recent strategic partnerships and product innovations enhance its global presence and operational efficiency, potentially supporting future financial performance despite current low return on equity forecasts of 19.3%.
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.
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