You don’t need to find a struggling company to find value. Sometimes, the more interesting setup is a business that keeps improving while its stock gets punished.

One overlooked insurance name on this list makes that disconnect particularly hard to ignore.

Oil & Gas

Matador Resources Co. (NYSE: MTDR) received a fresh vote of confidence after Wells Fargo upgraded the stock to Overweight with a $77 price target. The call follows stronger production expectations and improving economics across Matador’s Delaware Basin portfolio.

Shares around $59 leave the company near 7 times forward earnings, while management expects roughly $900 million of adjusted free cash flow for 2026. Against a market value near $7.2 billion, that works out to an estimated free-cash-flow yield of about 12%.

Production guidance has also moved higher, and several recently acquired properties carry lower expected drilling costs and stronger well productivity than Matador’s existing average. You are getting those operating improvements without paying a premium multiple.

Cash Generation Is Starting to Catch Up

Matador generated about $417 million of adjusted free cash flow during the first half of 2026, nearly matching what it produced during all of 2025. If production keeps rising while newly acquired acreage improves drilling returns, your upside can come from both stronger cash generation and a higher valuation multiple over time.

Commodity Prices Still Control the Story

Matador is spending heavily, leverage remains a consideration, and weaker oil or natural-gas prices could quickly pressure the current free-cash-flow outlook. Still, you do not need heroic commodity assumptions for a roughly 7x forward earnings multiple and 12% estimated FCF yield to start looking unusually cheap if management delivers on production and debt reduction.

Media

Sirius XM Holdings Inc. (NASDAQ: SIRI) jumped after Deutsche Bank upgraded the stock to Buy and raised its price target from $31 to $45. The call argues that current expectations underestimate what the audio company can earn as advertising and subscriber trends improve.

SiriusXM now expects about $1.375 billion of free cash flow in 2026. Against an equity value near $10 billion, that leaves the stock with a free-cash-flow yield around 14%, while its earnings multiple remains in the low double digits.

The operating picture is also showing signs of stabilization. Q2 delivered 22,000 self-pay net additions, a sharp improvement from previous declines, while churn fell to a record-low 1.4% and quarterly free cash flow climbed 48% to $593 million.

Subscriber Stability Changes the Math

SiriusXM does not need rapid growth for today’s valuation to work. If subscriber losses remain contained and management reaches its $1.5 billion free-cash-flow target for 2027, you could own a mature subscription business producing a substantial amount of cash relative to its market value.

Debt Keeps the Discount in Place

Competition from Spotify, YouTube, podcasts, and other audio platforms remains intense, while net leverage stood at 3.4 times adjusted EBITDA after Q2. Revenue growth is also modest, so your upside relies heavily on cash generation and subscriber retention rather than a major sales rebound, but the current valuation gives SiriusXM more room for imperfect execution.

Telecommunications

Telephone and Data Systems Inc. (NYSE: TDS) is abandoning its attempt to acquire the remaining 18% of Array Digital Infrastructure, removing a deal that would have issued additional TDS shares. Management now expects to restart its existing share-repurchase program instead.

TDS had about $523.9 million of repurchase authorization remaining at the end of June, equal to roughly 13% of its current market value. The company also continues to own approximately 82% of publicly traded Array, giving investors a visible asset against which to judge TDS’s valuation.

Corporate cash and the market value of that Array stake together approach TDS’s entire equity value, before assigning much value to the operating fiber business. For you, that makes the sum-of-the-parts discount more interesting than a simple earnings multiple.

The Buyback Can Attack the Discount Directly

Restarting repurchases gives management a straightforward way to exploit the valuation gap without issuing more stock for Array. If a meaningful portion of the authorization is deployed near current prices, your ownership percentage can rise while TDS retains exposure to Array and continues pursuing additional spectrum monetization.

Fiber Spending Keeps the Story Complicated

TDS Telecom is expanding its fiber footprint and targets roughly $310 million to $330 million of adjusted EBITDA this year, but heavy capital spending is consuming cash. 

Array’s market value can also fluctuate, and authorization does not guarantee repurchases, yet the combination of cash, listed assets, and a sizable buyback leaves an unusually tangible value case.

Huntington Bancshares (NASDAQ: HBAN)

Huntington is easy to overlook until you dig into what is happening underneath. The bank’s second-quarter results showed growth in net interest income and key strategic fee revenue, while management said credit remained strong. The company also completed its Cadence systems conversion in June, marking an important step in the integration.

That gives you a bank with several potential earnings drivers already in motion. Management also said it is seeing early revenue synergies in Cadence markets, with further cost and revenue synergies still ahead.

You still have to keep an eye on funding costs and credit quality. But if the integrations continue producing the benefits management expects, Huntington could have more room to improve than its quiet reputation suggests.

Goosehead Insurance (NASDAQ: GSHD)

Goosehead is the kind of stock that can make you wonder why the market is being so impatient. The business continues to grow revenue, add policies, and improve profitability, even after the stock took a beating. In the second quarter, total revenue increased, net income more than doubled from the prior-year period, and adjusted EBITDA grew strongly.

Policies in force also continued to grow, while total written premiums increased from the prior-year period. That gives you a business where the underlying insurance operation is still expanding rather than simply trying to repair past damage.

The interesting part is the combination of growth and improving profitability. If Goosehead keeps executing, you may have a business whose operating results eventually force the stock to catch up.

Xeris Biopharma (NASDAQ: XERS)

Xeris comes with more risk, but there is a real improvement story underneath it. Second-quarter net product revenue increased strongly, driven primarily by higher patient demand for Recorlev, while gross margin also improved from the prior-year period.

That gives you a company with products gaining traction and better economics behind each dollar of revenue. Recorlev has also been a major contributor to the company’s recent growth, making continued demand for the drug something worth watching closely.

You still have to accept more execution risk here than with Huntington or Goosehead. But if product demand keeps building and margins hold up, Xeris has a credible path to becoming a much stronger business.

That's our coverage for today; thanks for reading! Reply to this email with feedback or any stocks you want me to check out.

Best Regards,
—Noah Zelvis
Undervalued Edge