A semis sell-off just handed you a better entry on an auto chip name that was already setting up for a cycle recovery, and two more mid-cap value plays across healthcare and financial services are sitting at discounts wide enough to deserve real attention.

Stay with this, and you will know exactly where the setups are before the next catalyst closes the gaps.

Industrials

Honeywell International Inc. (NASDAQ: HON), the industrial automation and aerospace company, trades around $212.79 against a $248.04 consensus target, leaving roughly 16% upside. Today’s catalyst is a fresh post-spin outlook ahead of the Honeywell Aerospace separation expected on June 29. Full-year 2026 guidance still calls for $38.8 billion to $39.8 billion in sales and adjusted EPS of $10.35 to $10.65.

The cleaner story is what remains after the split. Honeywell Technologies is expected to generate $19.9 billion to $20.2 billion in 2026 sales, adjusted EPS of $3.95 to $4.15, segment margin of 19.8% to 20.3%, and about $2.0 billion in free cash flow. That gives the market a clearer automation business instead of one more crowded conglomerate story.

At this price, you get a breakup setup where the market still has to decide what the cleaner pieces are worth.

Fresh Outlook Puts the Split in Focus

The June 29 aerospace spin gives Honeywell a real near-term catalyst. A clearer Technologies business, with margin targets and free cash flow guidance, should make it easier to judge the remaining company by its own earnings power.

Consensus Upside Keeps the Re-Rating Case Alive

A 16% consensus upside is not a massive discount, but it is enough when a corporate split is weeks away. If the market assigns a cleaner multiple to the post-spin automation business, today’s valuation may not fully reflect the breakup value.

Healthcare

Guardant Health, Inc. (NASDAQ: GH), the cancer testing company behind Guardant360 and Shield, trades around $127.32 against a fresh $175 target, a 27% discount. The target raise lands after the FDA approved the expanded Guardant360 liquid biopsy panel, and Shield was added to updated colorectal cancer screening guidelines. That is a lot more than one bullish note.

Guardant is not a cheap earnings story. The company is still loss-making, so nobody should pretend this is traditional value. But Q1 revenue rose 48% to $301.7 million, test volume jumped 47%, and full-year revenue guidance moved up to $1.30 billion to $1.32 billion. The market is now weighing losses against a platform that continues to add clinical and commercial evidence.

That gives you a healthcare growth story priced like adoption, still needs to fight for every inch. 

FDA Momentum Makes the Platform Harder to Ignore

The new Guardant360 approval expands the company’s liquid biopsy footprint, while Shield’s guideline inclusion gives the screening business a clearer path into routine care. For a company built on test adoption, that is the kind of validation that can change the revenue curve.

Fresh Target Gap Keeps the Setup Alive

A $175 target is not a guaranteed destination. But against a stock near $127, the gap is wide enough to matter, especially when revenue guidance is rising and the screening market is still underpenetrated. The risk is real, but so is the evidence that the platform is getting harder to dismiss.

Retail

Academy Sports and Outdoors, Inc. (NASDAQ: ASO), the sporting goods and outdoor recreation retailer, trades around $52.33 against a GF Value of $59.13, about 11.5% below fair value, with Q1 earnings due Tuesday before the open. The forward PE sits at 8.27, while Wall Street expects $0.94 EPS on $1.43 billion in revenue.

This is not a glamorous retail setup. Demand for fitness, outdoor, and team sports can waver when shoppers get more cautious, and Q4 missed expectations. But Academy already pointed to Q1 sales growth of 6% to 7% and comparable sales growth of 2% to 3%, so tomorrow's print is not starting from a blank slate. 

A low-multiple retailer with a next-day catalyst and dividend support gives you a setup where even a steady quarter can matter.

Tuesday's Print Tests the Sales Recovery

The key will be whether sales growth came with clean inventory, stable margins, and guidance that does not undo the early momentum. At 8.27x forward earnings, the market is not pricing in much patience.

Dividend Support Makes the Valuation Case Less Fragile

The $0.15 quarterly dividend is not the whole thesis, but it provides another valuation anchor for investors while they wait for proof. Academy does not need a dramatic earnings surprise to look mispriced. If Q1 confirms traffic, sales, and margins are holding up, a stock below GF Value with a single-digit forward multiple may have room to reset higher.

Solventum (NYSE: SOLV) just completed a balance sheet transformation with the $4.1 billion Purification and Filtration sale proceeds going to debt reduction, and the stock still trades at 10.67x forward earnings against a med-tech peer group near 20x.

The $1 billion share repurchase program running at $66 against a $90 analyst consensus target is the most transparent signal available about the discount. Q1 2026 adjusted EPS beat estimates, and full-year guidance was reaffirmed, confirming the operational trajectory is intact while sentiment stays compressed.

The risk is that restructuring costs and ongoing tariff pressure continue weighing on reported earnings in a way that keeps the multiple depressed longer than the buyback can fully offset.

StoneCo (NASDAQ: STNE), the Brazilian payments and fintech platform, has been punished by sky-high Brazilian interest rates, but that environment is actively changing. Brazil’s central bank has delivered back-to-back rate cuts down to 14.5%, which directly reduces the cost of capital for the business and improves the economics of its lending and financial services products.

The stock trades at a significant discount to its historical multiple and to regional fintech peers, with Alpha Spread showing it materially below intrinsic value estimates. A normalizing rate environment in Brazil, combined with continued digital payments adoption gives you two separate tailwinds rather than one.

The risk is that the Brazilian macroeconomic environment deteriorates or political uncertainty around the October election creates a binary outcome that the discount does not fully compensate for.

TransUnion (NYSE: TRU) is coming out of a tough mortgage cycle stretch with new management that cut costs aggressively, and free cash flow conversion is accelerating as consumer credit stabilizes.

The international segment led by India is growing double digits and adding diversification the stock does not get full credit for at its current valuation. The Q2 print in late July is the catalyst where margin expansion should do most of the talking.

Accumulate on any dip and add into the print. The risk is that mortgage volume recovery takes longer than the earnings model requires, and the international growth rate slows before the margin expansion story is fully established.

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

Best Regards,
—Noah Zelvis
Undervalued Edge