Yes, most of the SaaS stocks that I hold and/or follow have been rated undervalued by Morningstar, even after their Q1 earnings reports.
Here are some examples of companies that recently published their Q1 numbers…
**Stock CurrPrice MstarFMV**
CFLT $21 $48
DDOG $98 $192
MNDY $115 $214
NET $58 $82
SNOW $129 $295
UPST $50 $75
While this looks pretty good, I am not yet convinced that these valuations are dependable.
We are through most of Q1 earnings season and overall tone of the forward guidance has been cautious. The economy is showing multiple signs of a slowdown, consumer sentiment is in the tank and inflation is still high. Most companies signaled that the rest of 2022 will be challenging for them, yet they do not have clarity about how bad or not as bad it could get.
We will know a lot more during the Q2 earnings season which starts in mid-July…we will get more dependable revenue forecasts then.
So over the next 6-7 weeks, we have ample time to over-analyze every single piece of economic data, CEO tweet, press release, industry conference presentation and of course our favorite uncles and aunts at the FOMC. Cue the predictions, forecasts, bullish and bearish calls and stock recommendations. There will be no dearth of opinions, including from me 
And don’t forget about the two 0.5% interest rate cuts (June and July) and QT (June 1st)….fun, fun, fun.
My plan is to raise cash as the market gives me opportunities to do so. Currently at 20%ish and will likely bring it up to 30% or so leading into the Q2 earnings season.
Q2 reports will provide better guages of how the rest of 2022 and most of 2023 will shape up for the economy and our favorite stocks.
Patience is the key to success in this market environment.
Beachman (@Iwannabeontheb2)