There are 593 companies expected to report earnings this week (3/20 - 3/24) according to Yahoo Finance. However, only a few appear to be trading well below their intrinsic value. Finbox.io fair value data shows that two of these 593 companies have at least 20% or more margin of safety: PVH Corp PVH and Micron Technology MU.
PVH corp is expected to report earnings on Wednesday and twelve valuation models conclude that shares are over 25% undervalued. This is slightly above Wall Street's consensus price target of $111.67 which still implies almost 20% upside.
Micron Technology is expected to report on Thursday after the market closes and the stock is currently trading near its 52-week high. However, Wall Street and finbox.io's six separate valuation analyses imply the stock’s still 20% undervalued.
2 Overvalued Stocks With 20% Downside
On the opposite end of the spectrum, there are only two companies expected to report earnings this week that have 20% or more downside.
Neogen Corp. NEOG appears to be trading at a 30% premium to fair value before earnings (expected Tuesday). Finbox.io's $43.83 intrinsic value estimate is below the Wall Street consensus price target of $58.00 which implies about 10% downside.
Ten valuation analyses imply that Cintas Corp. CTAS is 20% overvalued prior to earnings (expected Tuesday).
Value investors may want to take a closer look at the stocks listed above prior to them reporting earnings.
Note this is not a buy or sell recommendation on any company mentioned.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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