There are only 63 companies expected to report earnings this week (12/19 – 12/23) and only a few are trading well above their intrinsic value.
Finbox.io fair value estimate data shows that five of these 63 companies have a negative 15% or more margin of safety:
5 Stocks Trading 15% Above Intrinsic Value
Neogen is expected to report earnings on Wednesday before the market opens. The stock is trading at approximately 109% of its 50 day moving average while finbox.io’s fair value data shows that shares are 35% overvalued. Wall Street’s consensus price target of $58.25 implies 11% downside.
Conagra is expected to report on Thursday before the market opens and nine separate valuation analyses imply the stock’s at least 25% overvalued. Shares are currently trading at 98% of their 52-week high.
Valspar is expected to report on Tuesday before the market opens while ten cash flow models imply the stock’s stand-alone value is only $79 per share.
However, there has recently been regulatory approval concerns which the two companies have publicly denied. Nevertheless, the stock could drop 15% if the rumors hold any truth.
Paychex is expected to report earnings on Wednesday before the market opens. Finbox.io fair value estimates imply that the stock is 20% overvalued while Wall Street’s consensus price target of $55 per share implies 9% downside.
Worthington is expected to report earnings on Thursday. Shares are trading at 121% of their 200 day moving average. Eleven analyses imply the stock is 17% overvalued while Wall Street’s consensus highlights 20% downside.
Value investors who are long any of these stocks may want to take a closer look at their fundamentals prior to earnings.
Many academics claim investing is a “random walk.” We believe this to be only partially true. It is our core belief that value investing can outperform the market, hence the name “ValueWalk.” Your number one source for breaking news and evergreen content on everything value investing and hedge funds.
More From InvestorPlace
- The 10 Best Index Funds to Buy for 2017, 2018, 2019 …
- The Top 10 Mutual Funds to Buy for 2017
- The 10 Best S&P 500 Stocks of 2016