With inflation concerns tied to energy shocks, rising bond yields and central banks keeping a firm tone on policy, many investors are looking beyond headlines and focusing on what often matters most to a business: its cash flows. Our Undervalued Stocks Based On Cash Flows screener highlights companies where current prices sit below SWS DCF fair value estimates, suggesting a margin between market expectations and underlying cash flow potential. In this article, you will see 3 of the best stocks from this screener that stand out as candidates for investors who care about disciplined pricing and cash flow quality.
Tenable Holdings (TENB)
Overview: Tenable Holdings is a cybersecurity company that helps organizations find and fix weaknesses across their IT, cloud, identity, operational technology and AI systems before attackers can exploit them, using a suite of exposure management tools such as Tenable One, Tenable Cloud Security and Nessus.
Operations: Tenable generates about US$1.02b in revenue entirely from Security Software & Services, with roughly US$539.2m from the United States, US$283.8m from Europe, the Middle East and Africa, US$118.6m from Asia Pacific and US$80.7m from the rest of the Americas.
Market Cap: US$4.6b
Tenable Holdings may appeal to investors who want exposure to cybersecurity as the industry shifts from reacting to breaches to focusing on prevention, supported by a broad product set across AI, cloud and OT security and growing adoption of the Tenable One platform. Recent FedRAMP and government cloud approvals, OpenAI-linked initiatives and new AI driven detection features indicate how the company is positioning for stricter security requirements and AI related threats. Recent quarterly results and raised 2026 guidance have highlighted a path toward improving profitability. At the same time, Tenable is still transitioning from losses, faces funding risk from reliance on external borrowing and contends with slower forecast revenue growth than the wider US software market. Investors may wish to weigh these factors, including quality, execution considerations and valuation.
Tenable Holdings appears to be a prevention-focused cybersecurity story where cash flow and profitability are starting to matter more than pure growth. Get the full context with the DCF valuation analysis for Tenable Holdings and see what the market might be missing.
Mobileye Global (MBLY)
Overview: Mobileye Global develops advanced driver assistance and autonomous driving systems that help keep vehicles in lane, avoid collisions and eventually operate with minimal or no driver input, supplying hardware, software and data services to automakers and mobility operators worldwide.
Operations: Mobileye Global generates about US$2.01b in revenue, with roughly US$1.98b from its core Mobileye segment and US$38m from Other activities.
Market Cap: US$8.4b
Mobileye Global may be worth a closer look if you are interested in how today’s driver assistance features could evolve into full autonomous mobility and new revenue models. The company sells its EyeQ chips and ADAS software to major car makers and is planning a vertically integrated robotaxi rollout from 2027, combining Mobileye Drive with Moovit’s platform across thousands of vehicles. At the same time, it remains loss making, carries a richer valuation than many auto component peers and is exposed to tariff and geopolitical risks that could affect key markets like China. How those factors compare with cash flow potential and long-term contracts is a central consideration for investors assessing Mobileye Global.
Mobileye Global is working to turn its ADAS leadership into full autonomous mobility, yet the real story may lie in the gap between expectations and cash generation. See how the analysis report for Mobileye Global could reframe that risk reward balance.
Generac Holdings (GNRC)
Overview: Generac Holdings is an energy technology company that builds everything from home standby generators and portable batteries to large industrial backup systems, microgrids and software, helping households, businesses and data centers keep power on when the grid is stressed or offline.
Operations: Generac generates about US$3.59b of revenue from the United States and US$803.2m internationally, with a small segment adjustment of US$62.5m.
Market Cap: US$15.2b
Generac Holdings deserves attention if you care about how rising AI data center demand, extreme weather and aging grids are reshaping the need for reliable power. The company has a growing backlog tied to a hyperscale data center contract, record recent quarterly sales of about US$1.06b, and raised guidance that targets higher net margins. Yet the stock has lagged the wider US Electrical sector, and net margins are still only 4.4% after a tough year. With earnings forecast to grow faster than revenue and a business mix shifting toward higher value commercial and industrial projects, the real question is how those opportunities stack up against risks in residential solar, outage dependence and a high current P/E multiple.
Generac Holdings looks like an AI driven power story still priced like a traditional equipment supplier, with cash flows and a high P/E quietly pulling in different directions. Get the analyst forecasts for Generac Holdings before the balance between outage risk and data center demand shifts again
The 3 stocks in this article are only a starting point, as the full Undervalued Stocks Based On Cash Flows screener on Simply Wall St has uncovered 148 more companies where discounted cash flow and current pricing tell equally compelling stories. Unlock that full opportunity set and use the filtering tools in the Undervalued Stocks Based On Cash Flows screener to identify and analyze the specific cash flow catalysts and narratives that best match your highest conviction ideas.
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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.
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