Post #3950 by tjscott0 on the Macroeconomic Trends & Risks board

Personal Finance / Macroeconomic Trends & Risks

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https://www.morningstar.com/stocks/7-undervalued-s...

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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