When a business faces a genuinely difficult market, you learn a lot from whether management cuts costs or makes excuses. This one has cut three times in a year while insiders accumulated shares.

Read on, and you will see whether tomorrow’s numbers back them up.

Medical

Teleflex Incorporated (NYSE: TFX) gained fresh support after BofA upgraded the medical-device company to Buy from Neutral and raised its price target to $158 from $145. The firm believes new management and better execution can support a broader revaluation as recent integration problems fade.

At roughly $122, Teleflex trades near 11 times BofA’s 2027 adjusted EPS estimate of $11.25. Comparable medical companies with mid-single-digit growth trade closer to 14 times earnings, while Teleflex’s $1 billion repurchase program equals nearly 19% of its current $5.17 billion market value.

The discount comes during a major portfolio reset. Teleflex plans to use about $1.8 billion of after-tax divestiture proceeds for repurchases and roughly $800 million for debt reduction, giving you two direct ways the restructuring can strengthen per-share earnings.

The Cleaner Business Starts Showing in 2027

Management expects 2027 to provide a better picture of the remaining company after temporary costs, transition agreements, and divestiture effects settle. A lower share count and reduced interest expense can support earnings growth, while EZPLAZ and the broader vascular portfolio offer operating growth beyond the financial restructuring.

Integration Problems Have Not Disappeared

Teleflex lowered its 2026 organic sales-growth outlook after the Interventional business took longer to integrate than planned. Further delays could keep the valuation depressed and weaken confidence in management’s targets.

Still, the discounted multiple gives your position room for imperfect execution while buybacks and debt reduction reshape the earnings base.

Cannabis

Trulieve Cannabis Corp. (NYSE: TRLV) secured exclusive rights to produce and sell Alien Labs and Connected products across Florida and Texas. The agreement adds two premium brands to its established Florida operation and planned Texas entry.

At $12.21, Trulieve carries a market value near $2.33 billion and an enterprise value around $2.65 billion. Dividing that enterprise value by $300 million of trailing EBITDA places the stock near 8.8 times EBITDA, while its second-quarter adjusted EBITDA margin reached 36%.

Cash generation provides another reason to look beyond the cannabis label. Trulieve produced $53 million of operating cash flow and $32 million of free cash flow during the second quarter, so you have an operating business funding expansion instead of relying on repeated stock offerings.

Florida Provides the Launchpad

Trulieve operates a production and dispensary network in Florida, allowing the company to introduce the licensed products without building a new statewide system. Texas offers a second route for growth if its conditional medical-cannabis license receives final approval and the state’s restricted program expands over time.

Texas Remains an Unfinished Opportunity

The licensing announcement included no financial terms, federal and state cannabis rules remain unpredictable, and final Texas approval is not guaranteed.

Trulieve reported a large GAAP loss tied to restructuring in the second quarter, but a single-digit EBITDA multiple and positive free cash flow reduce the growth your return requires from the new brands.

Mining

Standard Lithium Ltd. (NYSE American: SLI) reached a milestone after its Arkansas partnership expanded a binding offtake agreement with Trafigura. The customer can now purchase up to 12,000 tonnes of lithium annually, bringing total possible commitments with LG Energy Solution to 20,000 tonnes.

Those agreements cover almost 89% of the South West Arkansas project’s planned 22,500-tonne annual capacity. Management says the commitments complete its customer process, allowing the partnership to focus on securing $1.1 billion of project debt and reaching a final investment decision.

Standard Lithium owns 55% of the project, making its share of the $1.275 billion after-tax net present value about $701 million. At a market value of about $453 million, you are paying roughly 65 cents for each dollar of project value before assigning anything to its East Texas assets.

Customer Commitments Clear a Financing Obstacle

Binding take-or-pay agreements show potential lenders that customers exist for nearly all planned production. Equinor’s 45% ownership and an existing $225 million federal grant add support as the partnership works toward construction and targets commercial production in 2029.

The Discount Comes With Construction Risk

The project requires $1.45 billion of capital, direct lithium extraction remains unproven at commercial scale, and the feasibility study assumes lithium carbonate at $22,400 per tonne. Financing delays or weaker prices could erase the discount before construction begins, leaving project execution as the risk to your return.

CarMax (NYSE: KMX)

CarMax is the largest used car retailer in America, the one with the enormous lots and no haggle pricing. Its problem is simple and not its fault: cars are expensive, and loans are expensive, so people are holding onto what they already own.

The stock trades roughly 22% below its estimated fair value. Insiders bought about $1.9 million over the past twelve months and sold nothing at all.

Management has cut corporate roles three times in a year, most recently 145 positions, as it works to reduce costs. Earnings land Tuesday before the open. Worth knowing: the earnings multiple sits above its own five-year average, so the discount comes from the fair value model rather than the profit line.

Jefferies Financial Group (NYSE: JEF)

Jefferies advises companies on mergers, takeovers, and raising money, then collects a fee. It trades roughly 12% below its estimated fair value with a quality score of 87 out of 100, which is high.

Insider buying over the past twelve months totals more than $628 million, though most of that comes from Sumitomo Mitsui Financial Group, a Japanese bank that sits on the board as a strategic shareholder rather than individual executives buying personally.

That is still a significant increase in SMFG’s stake, but it is a different signal from executives buying personally. Deal activity is picking up into year end and Jefferies has been winning mid sized mandates while the giants chase the headline transactions. Results are due Monday after the close.

Carnival (NYSE: CCL)

Carnival runs the largest cruise fleet on earth and reports Tuesday before the open. It trades modestly below its estimated fair value with a quality score of 81 out of 100. The dividend consumes only about 13% of earnings, so it is comfortably covered rather than stretched thin.

Carnival Rewards, which launched this year, now ties points and status to what customers actually spend, including purchases on its co-branded credit card. The debt pile is real and deserves respect. What moves this tomorrow is fuel cost commentary and whether forward bookings are holding up.

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