Donegal Group didn’t get the memo that insurance is boring — with earnings estimates up 75% and a dirt-cheap multiple, it’s quietly acting like a small-cap with something to prove.

This week’s lineup dives into that stealth breakout, plus overlooked names in gold, payments, and reinsurance, where the fundamentals are loud but the market’s still whispering.

They’re a private company, but Pacaso just reserved the Nasdaq ticker “$PCSO.”

No surprise the same firms that backed Uber, eBay, and Venmo already invested in Pacaso. What is unique is Pacaso is giving the same opportunity to everyday investors. And 10,000+ people have already joined them.

Created a former Zillow exec who sold his first venture for $120M, Pacaso brings co-ownership to the $1.3T vacation home industry.

They’ve generated $1B+ worth of luxury home transactions across 2,000+ owners. That’s good for more than $110M in gross profit since inception, including 41% YoY growth last year alone.

And you can join them today for just $2.90/share. But don’t wait too long. Invest in Pacaso before the opportunity ends September 18.

Invest While You Still Can

_{Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.}

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Financials

Intercorp Financial Services (NASDAQ: IFS) doesn’t always make headlines, but analysts are quietly dialing up the volume nonetheless.

Earnings estimates for 2025 are up 6.5% over the past three months, with the Street now modeling $4.63 per share. Not exactly flashy, but more than enough to get value investors leaning in.

And while most fintechs are still figuring out what they want to be when they grow up, IFS is playing smart, strategic ball.

The company’s new tie-up with Japanese capital partners opens the door to Asia-Pacific SME lending: a move that could unlock scale and yield in one shot.

It’s a calculated bet that solves a real financing gap and builds a growth engine without the usual startup headaches.

Here’s the kicker: the stock trades at 8.6x forward earnings and a PEG of 0.35, which puts it in a different universe than high-multiple peers like SoFi.

With improving revisions, a defensible business model, and new capital flows entering the picture, IFS doesn’t need hype to rerate; it just needs investors to do the math.

Industrials

Avis Budget Group (NYSE: CAR) just got a reality check from Bank of America, which downgraded the stock to Underperform and trimmed its price target to $113 from $120.

The analyst, Federico Merendi, pointed out the obvious: the stock’s summer rally wasn’t built on fundamentals.

U.S. rental demand is softening, pricing is weakening, and consumers aren’t exactly itching to splurge on travel.

In short, CAR’s recent run looks more like a detour than a long-term destination.

Add in potential tariffs later this year, and you’ve got more headwind than tailwind. Sure, there are bright spots — Avis First and a long-term fleet play with Waymo — but neither is moving the earnings needle fast enough to offset broader pressure.

Merendi slashed his 2025–2026 EBITDA forecasts and valuation assumptions, while noting that vehicle depreciation relief is modest at best compared to pandemic-era highs.

CAR now ranks among the most shorted U.S. stocks, which says plenty about sentiment.

With a forward multiple still technically below peers, valuation looks tempting, but without a clear earnings rebound, Wall Street seems unconvinced this story has room to run in the near term.

Financials

James River Group Holdings (NASDAQ: JRVR) is starting to flash on investor radars after analysts bumped 2024 earnings estimates by nearly 12% over the past 60 days.

That kind of upward revision doesn’t happen without strong execution — in this case, tighter underwriting, better cost controls, and a clean balance sheet driving stronger profitability across both insurance and reinsurance segments.

What makes it even more compelling? JRVR trades at a forward P/E of 5.7, far below the sector average of 8.1.

That discount comes despite visible earnings momentum and an improved risk profile, giving value-focused investors something to chew on.

In a market still obsessed with high-multiple tech and AI names, JRVR is one of the few financials showing both a valuation gap and fundamental strength.

Risks still linger — interest rate moves and catastrophe events could dent sentiment — but with improving guidance and multiple expansion potential, this name looks like a sleeper candidate for a re-rating if investor focus rotates back toward cyclicals.​

Donegal Group (NASDAQ: DGICA) wasn’t really winning any branding awards, but it’s quietly torching expectations this week.

Analysts jacked up earnings estimates by 75% in two months, while the stock’s been steadily sneaking higher.

With operations across insurance-prone states, DGICA could ride pricing tailwinds into a proper rerate... if anyone remembers to look.

Despite the momentum, it still trades at a P/E of 8.8. That’s discount bin territory for a company flashing growth signals.

At some point, the market might do the math and realize it’s underpaying for this kind of trajectory.

WEX (NASDAQ: WEX): WEX, Visa's quiet cousin with better upside. WEX handles all the grown-up tasks — fleet cards, healthcare payments, and travel expense platforms — but somehow missed the party invitation.

Earnings projections rose 4.2% this quarter, and it’s already putting up $15.63 per share for 2025, with a solid beat record.

Yet it trades at a forward multiple of 10.9, which looks like a typo next to Visa’s 30x.

This is looking more and more like a cash machine with a lower sticker price and a tighter operating model. If investors ever blink, this thing could re-rate fast.

First Financial Bancorp (NASDAQ: FFBC) keeps its head down, makes money, and raises dividends.

It just posted record revenue, a 20% return on tangible equity, and a clean $0.74 EPS. Not bad for a regional bank that rarely makes headlines.

NIM climbed to 4.05%, capital is strong, and even with some noise in CRE, the board felt good enough to bump the dividend.

It’s not flashy, but it doesn’t need to be. In a sector that still scares people, FFBC’s boring looks like a competitive edge.

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