Welcome back to Undervalued Edge, your evening briefing on value plays Wall Street is overlooking.

While headlines cheer market highs, we’re digging into deeply mispriced stocks with solid earnings, stable cash flow, and catalysts that don’t need hype. 

Today we spotlight three names worth owning now, beginning with an energy infrastructure king.

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Energy

Energy Transfer (NYSE: ET) is still trading like it’s stuck in crisis mode, despite a fortress-like financial position and a 7.6% yield. 

With enterprise value at just eight times EBITDA, the stock looks cheap even before considering recent net debt reduction below 4× and a 2.1× distributable cash flow coverage multiple. 

The pipeline giant just posted its 14th straight quarterly payout increase and doubled down on two strategic growth initiatives: the long-awaited Hugh Brinson Gulf-to-Texas pipeline and a carve-out LNG export play at Lake Charles, now fully funded and near term completion.

Meanwhile, the firm cited captive contracts from AI data-center clients, a theme few are discussing in energy. 

The 14th consecutive dividend raise gives investors immediate yield, while underlying cash generation leaves ample room for growth. 

With leverage now at its lowest in years, pressure from inflation or commodity swings is muted. 

At its current valuation, Energy Transfer offers a rare combination: reliable income, meaningful upside from project execution, and limited downside. 

That’s exactly the kind of value setup we like.

Cloud + EV

With the S&P and Nasdaq flirting with record highs, Wall Street’s pricing in perfection, and this week’s earnings calendar is about to test that theory.

Alphabet (NASDAQ: GOOGL) and Tesla (NASDAQ: TSLA) headline a loaded week with 112 S&P 500 companies reporting. 

That includes big players like Chipotle, IBM, Lockheed, and GE Vernova. 

But let’s be honest, the market won’t care unless Big Tech delivers. The “Magnificent Seven” are expected to post 14% YoY earnings growth. Everyone else is just 3.4%.

Valuations are stretched. Multiple expansion has done the heavy lifting. Now, revenue and margin beats need to show up. 

A soft print from Tesla or even lukewarm AI updates from Alphabet could crack the rally wide open.

Meanwhile, Fed governor Waller is publicly begging for a rate cut, but markets have stopped listening. Cut odds for July are now just 5%.

Bottom line: sentiment’s high, expectations are higher, and earnings have to catch up. This isn’t just another week. It’s the inflection point.

If the Magnificent Seven stumbles, the rest of the market might not be ready to catch the fall.

Pharma

Novo Nordisk (NYSE: NVO) is having a rough year, down over 50% in the past 12 months. But under the surface, it’s a different picture. 

This is a classic overcorrection.

Despite the selloff, Novo’s core business remains rock-solid.

The company still controls a third of the global diabetes market and is pushing hard into the red-hot weight-loss category. 

Last quarter, they posted 19% revenue growth and $4.5 billion in profit. That's an elite-tier performance. 

The problem is that investors were looking for a moonshot.

One high-profile drug trial came in slightly below internal targets, still beating every peer, but not enough to satisfy a perfection-priced market.

That’s where things start to get interesting. 

The forward P/E has dropped to 16.9, barely above the healthcare sector average and well below the S&P’s 22.3. 

For a market leader with strong tailwinds and a growing pipeline (including late-stage weight loss and Alzheimer’s therapies), that’s a valuation mismatch. 

Add in smart M&A moves and an ongoing push into rare disease treatment, and this is a business quietly building its next act.

Novo is just misunderstood. And if pipeline momentum re-accelerates, or even holds steady, the market’s mood could shift fast. 

The selloff smells more like fatigue than failure. For long-term buyers, this is a chance to load up before the sentiment flips.

Kraft Heinz (NASDAQ: KHC) is weighing a potential breakup of its business units, drawing fresh interest from dividend-focused investors. 

With rumors swirling about a spinoff of its grocery business, including core Kraft-branded products, the market is finally paying attention to the 5.8% yield that’s been hiding in plain sight. 

Shares are still down 17% on the year, but a cleaner portfolio centered around sauces and condiments could improve margins and reignite growth. 

Add $1.7 billion in remaining buyback firepower and a sub-11x forward P/E, and this is a high-yield defensive name that’s quietly setting the table for a rerating.

Lucid Group (NASDAQ: LCID) just landed its biggest vote of confidence yet. 

Uber is pouring $300 million into the EV maker to build 20,000 robotaxis over six years using self-driving tech from Nuro. 

The deal triggered a 40% surge in Lucid’s stock, and while some of that pop may cool off, the long-term setup is hard to ignore. 

Lucid only delivered 6,418 vehicles in H1, this order nearly triples its annual output. 

For a company long dogged by delivery skepticism, Uber’s endorsement rewrites the trajectory. 

The key now is execution. If Gravity SUV ramps cleanly, Lucid’s underdog run could turn into something bigger.

Chevron (NYSE: CVX) locked down a major win in Guyana, securing Hess’s 30% stake in the massive Stabroek offshore block, this acquisition, finalized after arbitration delays, adds roughly 11 billion barrels of oil equivalent and positions Chevron for upstream production growth through 2030. 

Despite a 7.5% dip in stock over the past year amid operational and Venezuela-related setbacks, the move significantly boosts long-term free cash flow and underpins its strong dividend profile. 

With a ~4.6% yield and decades of dividend hikes, Chevron stands out as a high-yield fast mover now trading below 10× earnings.

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

Best Regards,
—Noah Zelvis
Undervalued Edge