US services activity is growing at its strongest pace in nearly two years, which keeps cash rich companies in focus as investors watch how inflation and interest rate views evolve. When earnings quality matters more, stocks that generate solid cash flows yet trade below estimated fair value can attract fresh attention. This article looks at three stocks from the Undervalued Stocks Based On Cash Flows screener.

The stocks highlighted below are just a sample from this idea, with the full screen surfacing 44 more companies with equally compelling cash flow stories that are not covered here. To identify and analyze the opportunities that fit your own criteria, head straight to the Undervalued Stocks Based On Cash Flows screener.

Telix Pharmaceuticals (ASX:TLX)

Telix Pharmaceuticals is a commercial stage biopharma company that develops and sells radiopharmaceutical imaging agents and therapies, with its Precision Medicine and Therapeutics pipeline, including TLX591 and Illuccix, at the center of its cash flow potential story. The business currently generates most of its revenue from the Precision Medicine segment at about $704.7 million, with Manufacturing Solutions contributing around $277.1 million. Telix has a market cap of about A$5.3 billion.

Investors looking at Telix Pharmaceuticals are weighing whether its precision cancer imaging and treatment pipeline can justify the current discount to SWS DCF fair value. Illuccix and Gozellix are already contributing to precision medicine revenue and Q2 2026 growth, while late stage programs such as TLX591 and TLX250 could add new cash flow streams if trials and approvals progress as planned. On the other hand, debt is not yet well covered by operating cash flow, R&D and manufacturing investment remain significant, and an SEC subpoena and pricing pressure in PSMA imaging add uncertainty. If execution on these radiopharmaceutical assets is solid, the combination of improving margins and pipeline progress could be a factor in closing that valuation gap.

Telix Pharmaceuticals’ cash flow story is evolving fast. Yet the real question is how much of its pipeline strength is already priced in. Get the fuller picture in the 3 key rewards and 2 important warning signs (1 is major!)

Build your own Telix Pharmaceuticals style cash flow shortlist

Telix Pharmaceuticals and the two other stocks in this list all came from a single screener, but your best ideas will often come from filters that match how you think about opportunities. Use our customisable Screener to blend metrics such as cash flows, valuation, growth, balance sheet strength and risks, or tap straight into our curated Investing Ideas.

Lynas Rare Earths (ASX:LYC)

Lynas Rare Earths is a pure play rare earth miner and processor, producing NdPr and other rare earth oxides from its Mt Weld mine in Western Australia and processing hubs in Kalgoorlie and Gebeng. All of its A$715.89 million in revenue comes from Rare Earth Operations, so the cash flow story is closely tied to demand for these specialty materials used in magnets for EVs, wind turbines and other electrification uses. The stock has a market cap of about A$16.3b.

Investors watching Lynas Rare Earths are really weighing how reliable those NdPr driven cash flows can be in a backdrop of policy support, supply chain diversification and rapid electrification. The company is already producing and processing rare earths at scale, with improving margins and high quality earnings flagged. However, the market still prices the stock below the Simply Wall St DCF estimate while applying a rich P/S multiple. At the same time, 100% of liabilities come from higher risk funding sources and the business leans on a relatively narrow product set, so any regulatory shift, pricing reset or capital strain could hit free cash flow harder than expected. The upcoming FY2026 and Q4 results later in August and July 2026 may provide more detail on how that cash flow story is developing and how the associated risks are evolving.

Lynas Rare Earths sits at the intersection of policy support, electrification and supply chain shifts, yet the stock still trades below the Simply Wall St DCF estimate. See how the analysis report for Lynas Rare Earths could change how you view that gap.

WiseTech Global (ASX:WTC)

WiseTech Global develops and sells CargoWise and other software that help logistics companies manage the movement and storage of goods, with its subscription based CargoWise platform a key source of recurring cash flows that support its place in an undervalued cash flow screen. The company generates revenue across the Americas at about $450.7 million, Asia Pacific at roughly $254.8 million, and Europe, the Middle East and Africa at around $364.2 million. WiseTech Global has a market cap of about A$14.1b.

WiseTech Global may be worth a closer look if you care about recurring cash flows. CargoWise underpins a high margin SaaS business that supports the Simply Wall St DCF case for upside, backed by analyst forecasts of revenue and earnings growth that are well ahead of the broader Australian market. At the same time, investors need to weigh margin compression, a recent $75.6 million one off loss and higher leverage after the E2open deal, along with fresh ACCC scrutiny that has already hit the share price. Some investors may also consider potential outcomes if WiseTech executes on CargoWise expansion, integrates E2open cleanly and manages its balance sheet, compared with current pricing and cash flow based fair value estimates.

WiseTech Global’s recurring CargoWise cash flows and analyst growth forecasts are pulling in one direction, while leverage, an ACCC probe and that $75.6 million loss pull in another. See how the analyst forecasts for WiseTech Global reshapes that tug of war

Seeking Fresh Alternatives Before They Fly

Fresh ideas often move first, while slow research can leave investors watching breakouts from the sidelines. Focus on momentum while it matters and look for stocks that are still under the radar.

• Pinpoint resilient compounders with growing balance sheet strength by scanning the curated list of solid balance sheet and fundamentals (21 results) before the crowd reacts to their next phase of momentum.
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• Identify potential income shifts by zeroing in on high yield payers using the curated 5 dividend fortresses before dividend news gains wider attention.

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.