Three Undervalued Stocks to Ride Out Rising Bond Yields

Rising bond yields after the Federal Reserve's latest interest rate hike have investors rethinking how much they pay for every dollar of future cash. Dependable cash generators that trade below their estimated fair value can look attractive under these conditions.

Simply Wall St identified three such stocks: UiPath (PATH), Comfort Systems USA (FIX), and Alphabet (GOOGL). These companies have strong cash flow generation potential, with UiPath's automation platform turning software deployments into subscription agreements and Comfort Systems USA's MEP and HVAC work smoothing earnings across cycles.

Alphabet's Google Cloud unit is converting enterprise AI workloads into recurring income. However, the shift in long-term AI workload demand will shape Alphabet's pricing power and cash flow profile.

UiPath's automation engine could accelerate contract value if it can withstand pressure on pricing power. Comfort Systems USA's record backlog and conversion of contracted work into future revenue are positive signs, but a single shift in demand for complex technology projects could impact its margins and cash generation.