Three Undervalued Stocks to Watch by March 2025

As the U.S. stock market experiences fluctuations, major indices like the S&P 500 and Nasdaq are working to recover from recent declines. Investors are actively looking for prospects amid economic uncertainties and stable interest rates. In this context, pinpointing undervalued stocks—those priced lower than their true worth—can present growth opportunities as market conditions stabilize and confidence among investors increases.

Click here to see the full list of 198 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Now, let’s explore some key selections from the screener.

Overview: The Trade Desk, Inc. is a global technology firm with a market capitalization of around $27.44 billion.

Operations: The primary revenue source is its Advertising Technology Platform, which generated $2.44 billion.

Estimated Discount To Fair Value: 42%

Currently, Trade Desk’s stock trades at $55.85, significantly lower than its fair value estimate of $96.33, suggesting noteworthy upside based on discounted cash flow assessments. Despite facing recent challenges and litigation issues, the company expects earnings growth of 22.3% annually over the next three years, which outpaces the overall market. Strategic partnerships and new leadership are aimed at boosting operational efficiency and market presence, potentially driving revenue increases above the broader market rate.

Overview: Ally Financial Inc. is a digital financial services provider in the U.S., Canada, and Bermuda, with a market cap of around $10.89 billion.

Operations: Revenue streams include $1.62 billion from Insurance operations, $571 million from Corporate Finance, and $4.67 billion from Automotive Finance.

Estimated Discount To Fair Value: 18.6%

Ally Financial’s stock is trading at $36.12, under its estimated fair value of $44.36, indicating potential undervaluation. Projected earnings growth stands at an impressive 28.1% annually over the next three years, exceeding the broader U.S. market growth rate of 13.9%. Although profit margins have contracted and recent fixed-income offerings amounted to several million, revenue growth remains solid at an annual rate of 10.2%, outpacing average market rates.

Overview: Jabil Inc. specializes in global manufacturing services, with a market capitalization of about $15.28 billion.

Operations: Revenue components feature $19.03 billion from Electronics Manufacturing Services and $16.99 billion from Diversified Manufacturing Services.

Estimated Discount To Fair Value: 38.3%

Jabil’s stock trades at $143.83, significantly below its estimated fair value of $233.01, indicating it may be undervalued based on cash flow metrics. However, profit margins are expected to decline, and revenue growth may trail behind market trends. Nonetheless, earnings are projected to grow substantially at 26.5% annually over the next three years, outperforming the U.S. market’s anticipated growth of 13.9%. Recent insider selling and high debt levels could pose obstacles, but strategic expansions, such as new factories, may yield long-term advantages.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using an unbiased approach, and our articles are not intended as financial advice. They do not constitute a recommendation to buy or sell any stocks, nor do they take into account your specific objectives or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not include the most current price-sensitive information or qualitative factors. Simply Wall St does not hold any positions in the mentioned stocks.

Companies referenced in this article include NasdaqGM:TTD, NYSE:ALLY, and NYSE:JBL.

Have feedback or concerns about this article? Contact us directly. Alternatively, you can email editorial-team@simplywallst.com.