The newsletter this week is all about genuine discounts: a payments stock at 8x earnings versus a 30x peer average, a software name 37% below fair value, and a commerce platform priced 55% below what analysts think it is worth.

Stay with this, and you will have a clear view of where value is hiding in plain sight right now.

Internet Software

VTEX (NYSE: VTEX), a cloud-based digital commerce platform serving enterprise retailers across Latin America, posted Q1 revenue of $60.7 million, slightly below consensus, with EPS of $0.02 against an expected $0.03… a 33.33% miss. 

Four consecutive quarters without an earnings beat are keeping sentiment in check. The stock is up just 2.4% year-to-date versus the S&P 500’s 7.6% gain, and that underperformance reflects a market waiting for execution to tighten before rewarding the growth that has been quietly accumulating.

The full-year revenue expectation of $266.94 million is the real test. Beating that number consistently is what finally shifts the narrative from “growing but missing” to something the market is willing to reprice.

Consecutive Misses

Four straight quarters without a beat tells you the market has no reason to revise expectations meaningfully higher. That pattern limits the sentiment shift needed to close the gap between current pricing and analyst consensus targets.

Full-Year Revenue Target of $266.94 Million Is the Benchmark

The annual target is where the re-rating lives. A sustained beat against that number is what finally gives the market a concrete reason to start pricing in the growth that has been there all along.

Financial Services

PayPal (NASDAQ: PYPL), one of the world’s largest digital payments platforms with 439 million active accounts, trades at a forward P/E of roughly 12x. Dirt cheap for a business of this scale.

The business now has real challenges. Active account growth ran at just 1%, and the company recently announced a CEO change, with HP CEO Enrique Lores coming in to replace Alex Chriss. That leadership transition adds uncertainty to an already complicated recovery narrative.

But 439 million active accounts, a 14% EPS growth track record, and a sub-1 PEG on a business this large is a rare combination, and the current setup reflects a market pricing in more risk than the fundamentals necessarily justify.

Sub-1 PEG Ratio Points to Growth Priced Too Cheaply at Current Levels

A PEG below 1 means you are paying less than dollar-for-dollar for the earnings growth the business is expected to deliver. That is uncommon at this scale, and it reflects a valuation that has compressed well past what the underlying business performance would normally justify.

CEO Transition Adds Near-Term Uncertainty to an Already Discounted Setup

The incoming CEO brings operational credibility but also a learning curve on a complex global payments platform. That transition risk is real and is part of why the valuation has stayed compressed even as earnings kept growing.

Software

Braze (NASDAQ: BRZE), a customer engagement software platform, just had its CFO step down, with the Chief Accounting Officer stepping in as interim. That lands during a stretch where the stock is already down 32.32% year to date and roughly 29.68% over the past year. 

What keeps this from being a straightforward avoid is that management reaffirmed full-year guidance in full despite the leadership change. That tells you demand and revenue visibility are not the problem. The problem is sentiment, and that is a more solvable issue than a broken business.

Guidance Reaffirmation Holds the Floor Under the Setup

Confirming full guidance through a CFO transition signals no disruption to the demand or revenue pipeline. That removes the most obvious bear case and keeps the discount to fair value as the primary story rather than a deteriorating business.

37% Discount to DCF Fair Value Requires Execution to Resolve It

The stock sits 37% below a $30.84 DCF fair value and roughly 50% below the $34.95 analyst consensus. That kind of gap does not close on sentiment alone. It closes on results, and management has kept the bar intact to deliver against.

Nu Holdings (NYSE: NU) is one of the most compelling undervalued fintech setups in the market right now, and you should have it on your radar. The stock is down about 13% year to date, and trades at just under $15, yet the five-year PEG ratio sits below 1 at 0.87, which tells you growth is being priced at a discount to what the business is actually expected to deliver. 

The company has 131 million customers, added 4 million in the most recent quarter, and is actively expanding into the U.S. market, where even a 2% market share at 20% ROE would translate into $21 billion in revenue by 2030, according to Citigroup analysts. 

For a digital bank growing at this pace and still trading like a beaten-down mid-cap, the setup is genuinely hard to find right now. The risk is that U.S. expansion proves harder to execute than the Latin American playbook suggests.

Oracle (NYSE: ORCL) is one of the most overlooked large-cap setups of 2026, and the data backs that up clearly. The stock is down roughly 40% from its September 2025 highs and sits about 29% below the analyst consensus price target of $258, with Barclays maintaining a $240 Overweight target and calling the AI infrastructure growth opportunity underappreciated. 

Cloud revenue grew 44%, and Oracle Cloud Infrastructure surged 84% in the most recent quarter, with the company posting its first 20%+ organic revenue and EPS growth in over 15 years simultaneously. 

The $553 billion contracted backlog gives you unusual revenue visibility for a name trading at these levels. The risk is the $124.7 billion in non-current debt and the $50 billion capex plan, which leaves little room for execution slippage before the debt load becomes a more serious concern.

Comcast (NASDAQ: CMCSA) is genuinely cheap right now, and the business is far more durable than the current multiple suggests. 

It trades at roughly 9x forward earnings, well below the broader market and most media and telecom peers, while generating consistent free cash flow and returning capital through dividends and buybacks.

The cable and broadband business faces real secular headwinds from cord-cutting, but the connectivity infrastructure remains sticky, and the NBCUniversal and Peacock assets add optionality that a 9x multiple is not giving you credit for. 

This is a name where you are paying a distressed multiple for a business that is not actually distressed. The risk is that broadband subscriber losses accelerate faster than the free cash flow story can absorb.

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