This stock's selloff had nothing to do with its own playbook; it was a sympathy move in a jittery market. 

While everyone else flinched at Fiserv’s numbers, this payments operator kept stacking wins, and that disconnect just handed long-term investors like you a cleaner entry.

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Financials

Corpay (NYSE: CPAY) took a 5% hit this week, and the culprit wasn’t its own performance; it was friendly fire from Fiserv’s earnings.

When a peer in the same fintech sandbox reports softness in a key segment, the market doesn’t bother asking who’s actually bleeding.

It sells first and checks the ticker later.

The irony is that Corpay just cleared a major regulatory hurdle, getting court approval in London for its Alpha Group acquisition, a deal that expands its global payments reach.

Investors shrugged it off, proving that in this market, guilt by association still moves faster than fundamentals.

Here’s the thing: Corpay’s earnings are still growing, its integration story is intact, and volatility has been rare enough to make a 5% swing look dramatic.

The sell-off has more to do with fintech fatigue than cracks in Corpay’s business. Analysts still expect a clean earnings beat next week, and the company’s track record backs that view.

The setup looks familiar, panic from sector headlines creating a discount in a name that’s quietly executing.

For investors with patience and a sense of humor about market overreactions, this might be one of those moments where the chart overreacts and the math underprices reality.

Corpay doesn’t need to shout its story; it just needs time for cooler heads to realize it’s still one of the better operators in payments.

Education & Training Services

Udemy’s (NASDAQ: UDMY) latest quarter showed a company quietly getting its financial house in order while leaning hard into subscriptions, the kind of mix that turns volatility into leverage.

Revenue came in flat year over year, but subscription growth told the real story: up 8%, pushing paid consumer subscribers to 294,000 and beating the 2025 target months ahead of schedule.

Adjusted EBITDA more than doubled, margins expanded six full points, and the business finally swung to a $1.6 million profit from a $25 million loss.

That’s not luck; that’s discipline showing up on the income statement.

The strategy is clear: pivot from one-time course sales to recurring revenue.

It’s a short-term drag but a long-term advantage, especially with enterprise customers like Bayer, Hitachi, and Mazda Toyota Manufacturing expanding their contracts.

Free cash flow is positive, the balance sheet is tightening, and management just retired over 4 million shares.

Udemy’s AI-powered skill platform is tapping into a structural shift: companies reskilling for automation rather than hiring for it.

This is a business grinding its way toward durable profitability while trading like it’s still in turnaround mode.

As subscription economics compound and enterprise retention stays near 97%, the setup looks attractive for investors who can hold through the transition.

The model is maturing, and the market hasn’t caught up.

Healthcare

GeneDx Holdings (NASDAQ: WGS) keeps rewriting its own playbook.

The company dropped another earnings surprise this quarter, $0.49 per share versus the $0.28 analysts expected, and revenue jumped to $116.7 million, blowing past consensus by more than 12%.

It’s the fourth straight beat, but this time the scale of improvement makes it hard to brush off as momentum luck.

The company’s pivot toward AI-driven genomic analysis is finally starting to show up where it counts: in margins and investor confidence.

Analysts now expect profit margins to jump from a hair above zero to nearly 19% within three years, a wild swing powered by automation, proprietary data, and a growing moat around rare-disease sequencing.

The integration of Fabric Genomics is helping the company process more samples at lower cost, and partnerships with biopharma are adding steady, recurring revenue.

That’s the kind of leverage the market usually rewards, eventually.

The only catch? The stock’s valuation is already testing patience. It trades at roughly 9.5x sales, well above peers, but still nearly 50% below its DCF fair value.

In short, GeneDx looks expensive on paper but cheap on math, a paradox investors love until growth slows.

For now, the story reads like a classic early-stage rerate: high expectations, high potential, and a price that hasn’t made up its mind yet.

Alphabet (NASDAQ: GOOGL): Alphabet is still one of the cheapest mega-caps around, even with every part of the business firing.

Gemini is the backbone of its AI push, powering Google Cloud, Search, and everything in between.

Cloud revenue is climbing fast, and its custom AI chips give it an edge that competitors will spend years chasing.

The company’s execution remains sharp, with monetization improving across both ad and cloud segments, proving scale doesn’t mean stagnation.

Throw in decades of user data and a global distribution network most companies would kill for, and you’ve got a compounder priced like it’s on clearance.

If you’re building a long-term AI basket, this belongs at the top. Pullbacks are buying opportunities, not warning signs.

UiPath (NYSE: PATH): UiPath got unfairly benched when AI hype peaked, but the story’s finally catching back up to the fundamentals.

Its automation platform is turning into an AI command center, connecting bots, humans, and machine learning into one smooth workflow.

Deals with Nvidia, OpenAI, and Snowflake make that vision more real by the quarter.

Margins are solid, ARR is rising, and customers are doubling down on its automation suite.

The real edge here is its discipline, improving costs while integrating AI partnerships that actually produce results.

You won’t see fireworks here, but you will see progress that compounds quietly.

This is a name to accumulate before the market rediscovers what “execution” actually looks like, the kind that ages well in a portfolio.

GitLab (NASDAQ: GTLB): GitLab’s the steady hand in a space full of chaos. Revenue keeps growing above 25%, but the stock trades like it’s standing still.

The company’s shift to a hybrid seat-plus-usage model is a real unlock, with more value per customer, better margin visibility, and a smoother growth runway.

That kind of pricing evolution signals management is playing the long game, not chasing short-term hype.

Add a little takeover chatter from Datadog or Alphabet, and you’ve got a catalyst-rich setup without the froth.

Ignore the noise about AI names stealing all the air. GitLab is building the tools that those same companies depend on.

If you like patient payoffs, this is one to hold through the rerate and let consistency do the heavy lifting.

That's our coverage for today; thanks for reading! Reply to this email with feedback or any value names you'd like us to dig into.

Best Regards,
—Noah Zelvis
Undervalued Edge