Vertex Among 3 Stocks Considered Below Estimated Fair Value

The United States market remained flat over the last week but has seen an 18% increase over the past year, with earnings expected to grow by 17% annually. In this context, identifying stocks that are considered undervalued can offer potential opportunities for investors looking to capitalize on companies trading below their estimated fair value.

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

Name	Current Price	Fair Value (Est)	Discount (Est)
Vertex (VERX)	$14.225	$27.87	49%
Tigo Energy (TYGO)	$1.09	$2.17	49.7%
T1 Energy (TE)	$4.79	$9.43	49.2%
ServiceNow (NOW)	$144.71	$273.90	47.2%
Mobileye Global (MBLY)	$8.58	$16.39	47.7%
JinkoSolar Holding (JKS)	$13.54	$26.02	48%
Huntington Bancshares (HBAN)	$16.92	$33.34	49.2%
Dycom Industries (DY)	$294.34	$585.53	49.7%
DoorDash (DASH)	$236.74	$469.88	49.6%
Alerus Financial (ALRS)	$33.12	$63.02	47.4%

Click here to see the full list of 151 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

Vertex (VERX)

Overview: Vertex, Inc. offers enterprise tax technology solutions for the retail trade, wholesale trade, and manufacturing industries globally, with a market cap of $2.31 billion.

Operations: The company's revenue is primarily derived from its Software & Programming segment, which generated $787.44 million.

Estimated Discount To Fair Value: 49%

Vertex, Inc. appears undervalued based on cash flows, trading at US$14.23 against an estimated future cash flow value of US$27.87. Recent profitability and a forecasted annual earnings growth rate significantly above the market average enhance its appeal. Despite slower revenue growth expectations compared to the broader market, Vertex's strategic leadership changes aim to bolster global operations and technology innovation, potentially improving its financial position further amidst high debt levels and large one-off items impacting results.

• Our earnings growth report unveils the potential for significant increases in Vertex's future results.
• Delve into the full analysis health report here for a deeper understanding of Vertex.

ESCO Technologies (ESE)

Overview: ESCO Technologies Inc. supplies engineered components and systems for aviation, navy, defense, and industrial sectors, with a market cap of approximately $7.18 billion.

Operations: The company's revenue is derived from three main segments: Test ($266.80 million), Aerospace & Defense ($632.71 million), and Utility Solutions Group (USG) ($391.19 million).

Estimated Discount To Fair Value: 13.8%

ESCO Technologies is trading at US$276.96, below its estimated future cash flow value of US$321.4, indicating it may be undervalued based on cash flows. The company reported strong earnings growth with net income increasing to US$32.74 million in Q3 2026 from US$26.07 million a year ago, and raised its full-year sales guidance to between $1.30 billion and $1.33 billion, reflecting robust business momentum despite recent significant debt financing for an acquisition.

• The growth report we've compiled suggests that ESCO Technologies' future prospects could be on the up.
• Take a closer look at ESCO Technologies' balance sheet health here in our report.

Tutor Perini (TPC)

Overview: Tutor Perini Corporation is a construction company offering general contracting, construction management, and design-build services to both private and public sectors in the U.S. and internationally, with a market cap of $4.67 billion.

Operations: The company's revenue segments are comprised of $3.26 billion from Civil (Including Management Services), $2.09 billion from Building (Including Management Services), and $969.81 million from Specialty Contractors.

Estimated Discount To Fair Value: 40.2%

Tutor Perini, trading at US$88.84, is significantly undervalued against its future cash flow estimate of US$148.66. The company recently reported a substantial increase in net income to US$65.74 million for Q2 2026 from US$19.97 million the previous year, while maintaining strong earnings guidance for 2026 despite insider selling and executive changes. Recent contract wins and strategic debt refinancing further bolster its financial position and growth prospects amidst slower revenue growth compared to market averages.

• In light of our recent growth report, it seems possible that Tutor Perini's financial performance will exceed current levels.
• Dive into the specifics of Tutor Perini here with our thorough financial health report.

Turning Ideas Into Actions

• Delve into our full catalog of 151 Undervalued US Stocks Based On Cash Flows here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• 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.

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