Undervalued Stocks Screener

Wide moat from network density and scale, a deep discount to fair value, and a clean trap profile in a name the AI trade has ignored (carried). Retains the top slot because the thesis rests on volume normalisation rather than the discount rate — and the rate call inverted this period. Key risk sharpened: payrolls fell 23,000 and Q2 GDP slowed to 1.5% annualised, which delays the industrial volume recovery the thesis needs.

Q1 2026 topped estimates by 19% and the FY27 outlook was raised 9%, with a sustained top estimate-revision rank (carried) — yet the stock still trades at a value multiple. Dialysis volumes are set by demographics rather than the cycle, which is worth more with payrolls contracting and GDP decelerating. Key risk: reimbursement-policy exposure; no new print this period.

Q2 revenue of roughly $17B beat by $220-300M, with Skyrizi and Rinvoq both growing over 24% operationally and neuroscience up approximately 20% (carried) — yet shares fell 2-3.4% on full-year EPS guidance that narrowly missed. A genuine beat-and-sold-anyway case. Key risk: the guidance miss was real, and the immunology pipeline must prove it extends growth past the current cycle.

Q1 2026 blew past expectations and management raised premium and services revenue guidance to $171-175B (carried). Managed care trades at a persistent discount and the earnings driver is demographic rather than macro. Supportive datum this period: healthcare added 22,000 jobs in July, the strongest of any industry. Key risk: the turnaround is early; policy and cost-trend risk keep the flag on.

Reported Q2 results on 31 July beating consensus, with Zacks Rank independently reconfirmed at #2 (Buy) ahead of the print. Trimmed only one point on the rate reversal — unlike the banks, its fee base is AUM-linked, and record index closes this period support it regardless of the rate path. Key risk: active-management AUM flows remain a structural industry-wide headwind.

Among the strongest free-cash-flow yields in the screen with a wide moat from the oncology franchise (carried), and a cash-return profile indifferent to the rate path — which is precisely why it needed no adjustment in a period when the rate call inverted. Key risk: Eliquis loss-of-exclusivity is not yet fully offset; pipeline execution required.

A wide-moat healthcare compounder that stayed cheap while the AI tape ran (carried). Keytruda anchors the franchise with newer oncology and vaccine ramps behind it. Rate-insensitive by construction — the thesis reads identically whether hike odds are 55% or 44%. Key risk: Keytruda loss-of-exclusivity later this decade keeps pipeline diversification the central variable.

Downgraded from 80. For three editions the case here was higher-for-longer supporting net interest margin; September hike odds fell from 55% to 44% this period and money markets stopped pricing any 2026 hike before December. Fundamentals unchanged and no print landed — but the macro argument carrying the group is materially weaker, and the margin of safety was already narrow after the sector's run.

Second-quarter earnings came in better than expected, lifting shares more than 7% (carried) — genuine progress against the trap thesis. What keeps the flag on: the litigation tail and a multi-year revenue decline, now compounded by a cyclical-demand question as Q2 GDP slowed to 1.5% annualised. A settlement-clarity catalyst remains the short-horizon re-rating path.

Beat Q2 expectations on both the top and bottom line, lifting shares nearly 5% (carried) — real progress on a deep cyclical discount. Flags: ROIC volatility, EV-transition cash burn, the tariff regime on cross-border production, and now a softening demand backdrop with payrolls contracting. A lower rate path is a mild offset for auto financing.

Downgraded from 78 on the rate reversal. Still among the cheaper large banks on a price-to-book basis, which is why it retains the largest discount band in the bank cohort — but the net-interest-margin tailwind that supported the whole group weakened materially this period. No new print.

Q2 EPS of $2.10 beat the $2.01 consensus on 10 July; Zacks Rank reconfirmed at #2 (Buy) as of 30 July. This period brings a genuine offset to the standing fuel-cost flag: crude fell as energy became the weakest sector on Iran-deal speculation. Key risk on the other side — a contracting labour market eventually reaches discretionary travel demand.

Morningstar rates CNH a five-star name trading roughly 45% below fair value, one of only three five-star small and mid-cap industrials on its list (carried). Management frames current results as a cyclical trough versus the 2023 peak. Key risk sharpened this period: the thesis is explicitly a cyclical-recovery bet, and Q2 GDP just slowed to 1.5% annualised — timing risk is real and now more acute.

Down sharply from highs on medical-cost inflation and Medicare-Advantage rate pressure (carried). The contrarian re-rating depends on the cost trend actually normalising. Supportive backdrop datum: healthcare added 22,000 jobs in July, the strongest of any industry — demand is not the issue, cost is. No new print this period.

Upgraded from 71 — and the reason is entirely macro. Beat Q2 EPS and subscriber expectations (carried) with deleveraging continuing, but for three editions this screen penalised it for a rising discount rate. That expectation fell this period: September hike odds went 55% to 44%. Nothing changed at the company; the re-rating catalyst the thesis was missing came back. Reverses first if the next inflation print revives the hike case.

Downgraded from 77, the largest trim in the bank cohort — it was also the most direct net-interest-margin beneficiary of the higher-for-longer thesis, so it loses the most as that thesis weakens. Fundamentals unchanged; no print this period.

Morningstar assigns a narrow moat and a $96 fair value estimate; fiscal Q1 diluted EPS of $1.31 beat the $0.95 consensus, yet the stock fell over 9% the same session — another beat-and-sold-anyway case (carried). Share count is down nearly 40% since fiscal 2013 on sustained buybacks. A lower rate path modestly helps used-vehicle financing. Key risk: CEO transition uncertainty and a softening consumer.

Downgraded from 74 on the rate reversal. A moderate remaining discount after the sector's run, with the macro argument behind it now weaker. Same two-sided sentiment as the rest of the group; no new print this period.

A meaningful discount and a high, long-standing dividend (carried), but COVID-product roll-off and patent expirations keep the multi-year revenue trend pressured. The valuation works if revenue stabilises — that conditional is the entire thesis, and it is unaffected by the rate reversal in either direction. No new print this period.

Upgraded from 69 on rate relief alone. A deep discount and high free-cash-flow yield (carried) in a bond-proxy profile that spent three editions being penalised for a rising discount rate; that pressure eased this period. Cord-cutting remains the structural question underneath the valuation, and it is unchanged.

Downgraded from 73. The highest-quality bank in the screen and the smallest trim in the cohort — quality holds up better when the macro argument weakens. But the quality is well recognised and the discount was already modest before the net-interest-margin thesis lost force.

Upgraded from 68 on rate relief. Wide moat and a fortress balance sheet (carried); the issue was never quality but relative appeal against a rising risk-free yield. With September hike odds down to 44%, that competition eased. Quality unchanged, math improved.

Downgraded from 74. Genuinely two-sided this period: record index levels and rising client assets help the fee side, but a lower expected rate path trims the interest income earned on client cash balances that has supported recent results. The two effects do not fully offset — hence the trim.

Downgraded from 72 on the rate reversal. A custody-bank model with a fee-based revenue mix that benefited from higher-for-longer; that support weakened. Free-cash-flow and leverage metrics are sector-atypical for a custody bank and are marked n/v rather than estimated.

A wide discount and strong free-cash-flow yield (carried), but Aetna integration, PBM political risk and a prior dividend-cut history keep the score deliberately capped. Lowest-confidence healthcare name in the screen. No new print this period.

Guided to roughly 29% year-over-year revenue growth for Q2 2026, trading at an EV/Sales multiple well below infrastructure-software peers per third-party narrative analysis (carried). A lower rate path modestly supports long-duration software valuations. Key risk: extreme volatility means entry timing matters as much as the thesis.

Upgraded from 66 on rate relief. A wide-moat staple with a durable payout (carried) whose main problem was competing against a rising risk-free yield. That competition eased as hike odds fell to 44%. Business quality intact throughout; only the relative math moved.

Fell in the prior period on memory-cost pressure and a soft China and Services print; no new print this period. A wide moat and enormous buyback capacity argue for eventual mean reversion, but one soft quarter does not establish a value case at this scale. Note: memory costs are tied to the same semiconductor complex that rebounded more than 7% this week — a mild positive for sentiment, not yet for the cost line.

Upgraded from 63 on rate relief. Adjusted EPS rose 8% to $0.99 last period even as GAAP EPS dipped on restructuring charges (carried). A wide-moat staple in the most rate-exposed band in the screen — which is exactly why the fall in hike odds helps it most among the staples.

Still the screen's central value question, and deliberately upgraded only one point. Two editions ago Intel beat, guided above expectations and closed down 7.89%. This period the chip complex rose more than 7% and Intel participated — but the complex entered that week down roughly 15% since 1 July, with many names still 40-50% lower year to date. A strong week inside a bad quarter does not distinguish mispricing from repricing.

Downgraded from 66. The Q2 beat was verified but substantially commodity-driven, and this period energy became the weakest S&P sector, down over 2%, as crude fell on White House signals of a possible Iran agreement — with no deal announced. Marked down on the input that produced the earnings, not on the earnings themselves.

Downgraded from 65, the largest energy trim. Q2 adjusted EPS beat consensus by roughly 15-19% with record US upstream production and $8.0B of debt paid down (carried) — genuinely strong results. But the stock fell about 5% this period as energy inverted to the weakest sector on Iran-deal speculation. Strong balance-sheet progress, reversing commodity input.

Screens as undervalued on earnings multiples, with a P/E of roughly 11.7-12x against peers near 15.7x and a modest discount flagged by third-party coverage, though broader valuation checks are mixed (carried). The HDFS restructuring unlocked over $1.2B in discretionary cash. Key risk: secular demand decline, an ageing customer base and $75-90M of 2026 tariff cost pressure are structural, not sentiment — and a contracting labour market pressures big-ticket discretionary purchases directly.