Three Stocks That May Be Undervalued In December 2025

Simply Wall St · 3d ago

As the United States market experiences fluctuations with tech shares under pressure and major indices retreating from record highs, investors are keenly observing opportunities amid concerns of an AI bubble. In such a volatile environment, identifying potentially undervalued stocks becomes crucial for those seeking to capitalize on market inefficiencies and price discrepancies.

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

Name Current Price Fair Value (Est) Discount (Est)
Webull (BULL) $9.16 $17.89 48.8%
UMB Financial (UMBF) $118.17 $232.81 49.2%
Sportradar Group (SRAD) $23.11 $45.87 49.6%
Schrödinger (SDGR) $18.05 $35.42 49%
Perfect (PERF) $1.75 $3.43 49%
Motorcar Parts of America (MPAA) $13.77 $26.53 48.1%
Mobileye Global (MBLY) $11.07 $21.30 48%
Krystal Biotech (KRYS) $244.65 $469.32 47.9%
FirstSun Capital Bancorp (FSUN) $37.79 $73.32 48.5%
Columbia Banking System (COLB) $29.24 $57.69 49.3%

Click here to see the full list of 211 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener.

Protagonist Therapeutics (PTGX)

Overview: Protagonist Therapeutics, Inc. is a biopharmaceutical company focused on developing peptide therapeutics for hematology and blood disorders, as well as inflammatory and immunomodulatory diseases, with a market cap of $5.96 billion.

Operations: The company generates revenue from its biotechnology segment, specifically focusing on startups, amounting to $209.22 million.

Estimated Discount To Fair Value: 18.3%

Protagonist Therapeutics is trading at US$95.35, below its estimated fair value of US$116.77, suggesting potential undervaluation based on cash flows. The company forecasts a significant 44% annual earnings growth over the next three years, outpacing the broader market's growth expectations. Despite recent net losses and declining profit margins, Protagonist's promising pipeline includes rusfertide for polycythemia vera, which has received multiple FDA designations and demonstrated positive Phase 3 results.

PTGX Discounted Cash Flow as at Dec 2025
PTGX Discounted Cash Flow as at Dec 2025

Atlantic Union Bankshares (AUB)

Overview: Atlantic Union Bankshares Corporation is a bank holding company for Atlantic Union Bank, offering a range of banking and financial services to consumers and businesses in the United States, with a market cap of approximately $5.22 billion.

Operations: Atlantic Union Bankshares generates revenue through its Consumer Banking segment, which accounts for $416.66 million, and its Wholesale Banking segment, contributing $474.99 million.

Estimated Discount To Fair Value: 19.2%

Atlantic Union Bankshares, trading at $36.65, is undervalued compared to its fair value estimate of $45.36 based on discounted cash flow analysis. The company anticipates significant earnings growth of 41.5% annually over the next three years, surpassing market expectations. However, recent shareholder dilution and low forecasted return on equity pose challenges. Despite these issues, Atlantic Union's dividend yield remains attractive following a recent increase to 4.5%, supported by strong net interest income growth in recent quarters.

AUB Discounted Cash Flow as at Dec 2025
AUB Discounted Cash Flow as at Dec 2025

Tapestry (TPR)

Overview: Tapestry, Inc. is a company that offers accessories and lifestyle brand products across North America, Greater China, the rest of Asia, and internationally, with a market cap of approximately $25.21 billion.

Operations: The company's revenue is derived from its segments: Coach at $5.86 billion, Kate Spade at $1.17 billion, and Stuart Weitzman at $176 million.

Estimated Discount To Fair Value: 10.5%

Tapestry's recent financial performance highlights its potential as an undervalued stock based on cash flows. The company reported a substantial increase in net income to US$274.8 million for the first quarter, with earnings per share rising significantly from the previous year. Despite high debt levels and insider selling, Tapestry's shares are trading at US$123.21, below the estimated fair value of US$137.73, supported by strong profit growth forecasts of 24.6% annually over the next three years and ongoing share buybacks totaling US$2 billion since November 2024.

TPR Discounted Cash Flow as at Dec 2025
TPR Discounted Cash Flow as at Dec 2025

Summing It All Up

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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.