Earnings season is upon us once again and money managers must navigate through a tornado of financials in order to identify undervalued securities and make economic sense from all of the accounting noise. To aide in this effort, we like to provide a focus list of companies to help you get a head start in wading through next week’s earnings releases.
Earnings releases can, at times, provide a catalyst for undervalued companies that beat earnings to have sustainable price appreciation. On the flip side, it can also provide a catalyst for overvalued companies to have a big price correction if they miss earnings estimates.
Below is a list of undervalued stocks that earn an AFG Investment Grade of A or B with low expectations, and another list of overvalued stocks that earn an AFG Investment Grade of D or F with high expectations to serve as a starting list of company’s worth spending time on for further qualitative due diligence and sensitivity analysis.
AFG Earnings Release Value Catalyst Report – Week of 2-1-17 to 2-9-17