Undervalued Stocks To Watch: UiPath, Autodesk, and Alphabet

Global bond yields have surged to levels not seen in decades, affecting many growth stocks but also pushing some steady cash generators to undervalued prices. Value hunters focus on this gap between solid cash flow potential and discounted share prices. Three stocks flagged by the cash flow discount screener as worth a closer look are UiPath (PATH), Autodesk (ADSK), and Alphabet (GOOGL).

UiPath provides an automation platform that streamlines repetitive workflows for enterprises using robotic process automation and AI-driven software. The company generates $1.7 billion from software and programming, with around $750 million coming from the United States and the rest split across international regions. UiPath's automation platform is built on recurring software subscriptions, making it a prime candidate for long-term cash generation models.

Autodesk offers design, engineering, and BIM-focused cloud software that converts design workflows into subscription streams. The company generates $7.8 billion from CAD/CAM software, with sales spread across the U.S., EMEA, APAC, and other Americas. Autodesk's BIM and construction cloud tools can capture a share of the AI-driven productivity shift, which will impact margins and pricing power.

Alphabet runs Google Search, YouTube, Android, and other services worldwide, while Google Cloud sells AI and data platforms to enterprises. Alphabet generates $367.1 billion from Google Services, $77.6 billion from Google Cloud, and $1.5 billion from Other Bets, with most revenue coming from the United States. Google Cloud has become a money-maker for Alphabet, turning operating profitable in 2023 and maintaining momentum.