7 Undervalued Stocks That Crushed Q1 Earnings

Investment Analysis Clubs Macro Economic Trends and Risks
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https://www.morningstar.com/stocks/7-undervalued-stocks-that-crushed-q1-earnings

ADNT
AS
APH
TEAM
FICO
RDDT
RKT

While Morningstar analysts pay close attention to earnings, they focus on long-term results and valuations. One quarter doesn’t usually lead to a change in a stock’s fair value estimate unless new material information affects the assumptions behind that valuation.

We screened for stocks that beat earnings expectations by 10% or more but remain undervalued. To help keep the focus on companies with truly strong results that did not beat expectations through accounting gimmicks or one-time factors, we also screened for revenue beats of 5% or higher. We filtered those results for stocks with economic moats, a Morningstar Rating of 4 or 5 stars, and a price/fair value ratio of 0.8 or lower.

The seven above popped up using the above screen.

I do not know if the quarterly earnings were a one time blip or a break out indicating a long term earnings advantage.
I don’t do individual stocks anymore. I do ETFs.
So caveat emptor.
Who knows, one or many of the 7 may be a undiscovered gem. For those that do invest in individual stocks they may bear further investigation.

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Wow… an actual investing post on METAR! :smiley:
Reddit (RDDT) is a Saul stock - you can research the tribal knowledge there… or you can google RDDT to get Reddit reviews of themselves (and the public, who Redditors along with them).

TEAM is an old MF choice and has significant writings up on why it’s a rule breaker and and and… but suffering from the SaaSpocalyps. However, they have a strong installed base and a strong body of enterprise entrenchment that, if done properly, should yield significant value to THAT enterprise for AI. (more value than AI native providers, IMO).

FICO Fair Issac? Stock Advisor has called this one more than once, as well. I guess credit scores and monetizing data for credit analysis isn’t going away.

No positions in any above, except RDDT, which I believe can monetize their user data.

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