With the onslaught of earnings releases, and dramatic short term price fluctuations, it’s difficult to cut through the noise to identify real long term value. 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 with low expectations, and another list of overvalued stocks with high expectations, to help you get a head start and navigate through next week’s earnings releases. Also, here is refresher link for Value Expectations and our multi-factor Investment Grade. We would suggest doing further qualitative due diligence on these stocks and further sensitivity analysis.