Earnings season may be winding down, but value setups are heating up in some of the least-hyped corners of the market.
One underdog just posted record cash flow, another is spending billions to fix a broken system, and a third delivered a monster quarter, only to be ignored by the Street.
We’ve also got three stocks rallying off fresh catalysts, plus a few stealth names where the charts are quiet, but the upside setups are starting to take shape.
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Technology
Lyft’s Founders Exit, but the Setup’s Just Getting Interesting
Lyft (NASDAQ: LYFT) has spent most of its public life playing second fiddle to Uber. But this week, it’s making headlines for a very different reason: corporate cleanup, sharper execution, and a serious shot at long-term profitability.
Co-founders Logan Green and John Zimmer are stepping off the board and converting their Class B shares, officially ending the dual-class structure that’s haunted governance critics for years.
The move consolidates voting rights, trims the board to seven, and hands Chair duties to industry vet Sean Aggarwal.
It’s not flashy, but it’s exactly the kind of adult supervision the stock needed.
Under CEO David Risher, Lyft is showing signs of a real turnaround. The company posted a $40 million profit in Q2, gross bookings are up 12% year-over-year, and free cash flow topped $329 million for the quarter.
Incentive costs are down, margins are up, and guidance for Q3 handily beat Street estimates.
Valuation is still modest. Shares trade at just 12.5x forward earnings, with a PEG ratio of 0.7.
Lyft may never outscale Uber, but it doesn’t have to. This is a focused, cash-generating niche player finally shedding its messy past.
And if Europe delivers, the rerating story could accelerate.
Healthcare
CVS Spends $20 Billion to Fix What Everyone Else Won’t
CVS Health (NYSE: CVS) isn’t chasing AI buzzwords or selling the metaverse to investors. Instead, it’s quietly pouring $20 billion into solving the biggest headache in U.S. healthcare: interoperability.
This week, the pharmacy giant joined forces with tech titans like Apple and Google under the CMS Health Tech Ecosystem initiative.
The plan? Build a unified data platform that connects payers, providers, pharmacies, and patients in one clean loop.
Think less bureaucracy, more real-time care, and a shot at transforming healthcare delivery from the inside out.
CVS isn’t just talking. It’s rolling out new Aetna tools like Care Paths, giving users personalized care maps, real-time claim tracking, and clearer out-of-pocket costs.
It's not sexy, but it’s sticky, and it’s helping CVS pull ahead of legacy insurers.
Meanwhile, the stock’s trading like it’s stuck in 2015. 10.4x forward earnings, PEG at 0.7, and a 0.21x price-to-sales ratio, all while racking up 47% YTD gains.
Analysts are pushing estimates higher for 2025 and 2026.
This isn’t a moonshot. It’s infrastructure. And for value investors who believe healthcare’s next leap will be digital, CVS is one of the few names actually building the bridge.
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Precious Metals & Mining
SSR Mining Blows Out Earnings, But One Big Risk Keeps It Grounded
SSR Mining (NASDAQ: SSRM) just delivered the kind of quarter that would normally send a gold stock flying. Revenue more than doubled.
Net income came in over $90 million, up nearly tenfold from last year.
And gold-equivalent production surged to 120,000+ ounces, thanks to a strong showing at Marigold and Seabee.
On paper, it’s a breakout. Adjusted EPS of $0.51 crushed estimates, full-year guidance was reaffirmed, and cash generation is ramping. Analysts now expect 400% earnings growth next year. For any miner, that’s rare air.
But the stock barely moved, and that’s the story.
SSR’s monster print is being overshadowed by a cloud still hanging over its Çöpler mine in Turkey.
Operations there remain offline, and the restart depends on navigating tricky regulatory terrain. Investors are still assigning a heavy discount until there’s clarity.
Meanwhile, the valuation’s doing its own thing. The stock trades at 8.4x forward earnings, with a PEG ratio of 0.4, and sits well below historical peaks.
Even after a huge 12-month run, it’s priced like gold’s already rolled over.
This quarter was proof that the core business is firing. But until Çöpler gets unstuck, the market’s holding back. If that flips? So does the upside.
Actionable Picks This Week
Geely Automobile Holdings (GELYY) continues to pull ahead of the broader auto sector, with shares up 31.7% YTD while most peers struggle to stay flat.
That outperformance isn’t just technical, it’s grounded in a sharp uptick in earnings confidence.
Analysts have revised full-year profit expectations up 11.2% in the last 60 days.
Even with that momentum, GELYY still trades at a modest 11.6x forward earnings, offering real value relative to the S&P 500’s stretched multiple of 24.
Investors are also leaning back into foreign automakers with proven track records, and Geely’s consistent profitability, improving margin profile, and disciplined strategy make it a standout in the crowded EV-adjacent space.
While the stock has rallied, there’s still a valuation disconnect between current earnings power and where the market’s pricing it.
This is one of the few auto stocks where both the fundamentals and the chart are aligned, and it’s still trading like it’s got something to prove.
Berkeley Group Holdings (BKGFY) is quietly reinforcing its place as one of the most disciplined players in UK housing.
The company recently retired 34,089 shares as part of a shareholder-approved buyback, signaling management’s ongoing confidence even as broader housing sentiment cools.
Shares are up 10% YTD, and the firm is still projecting ~$500 million in annual pre-tax profit for the next two years, despite softening demand and rising sales incentives.
It trades at just 11.8x earnings and 1.2x NAV, while still delivering a post-tax ROE north of 10%, a rare combo in a sector where equity returns are under pressure.
Berkeley has also been shifting more homes into its build-to-rent platform and picking up new land and planning consents.
It’s the kind of quiet operator that tends to outperform when the cycle turns.
For value-focused investors looking for exposure to housing without chasing cyclical volatility, Berkeley offers a steady hand and a balance sheet to match.
Blue Bird (BLBD) is turning heads with execution that’s hard to ignore. The school bus manufacturer reported a standout Q2, with $398 million in revenue, a 19.4% YoY increase and a 5.5% beat, alongside an EPS beat of 21%.
Even more impressive is that management reaffirmed its full-year revenue and EBITDA guidance, both of which are now trending above consensus.
This isn’t a flash in the pan either: margins are holding steady at 12.6%, and free cash flow swung positive, hitting $52 million versus negative last year.
Despite all that, BLBD still trades at 14.5x forward earnings, well below many industrial peers. Analysts expect 8% EPS growth next year on top of triple-digit earnings expansion over the last two.
Momentum, pricing power, and improved unit economics are giving the company a long runway into 2026.
After a record-breaking quarter, Blue Bird still hasn’t priced in how much cleaner and more profitable this business has become.
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Fast Movers to Watch
Campbell Soup Company (NYSE: CPB): Trading in the low $40s and well below its $62 fair value estimate, Campbell’s has been creeping back into the conversation as management outlines a new $250 million cost savings plan through 2028.
The stock has underperformed, but with cash-rich operations, a wide-moat brand portfolio, and early signs of margin repair, CPB is starting to look less like a pantry staple and more like a potential value turnaround.GSK plc (NYSE: GSK): Quiet on headlines but sitting nearly 40% below fair value, GSK is drawing slow-burn interest thanks to a strengthened drug pipeline and steady expansion into emerging markets.
Management has shifted its strategy toward true innovation, and with key franchises in respiratory, HIV, and vaccines, the company is positioned to benefit if sentiment rotates back toward big-cap pharma.Constellation Brands (NYSE: STZ): Flatlining near $170 despite a $247 fair value target, STZ isn’t making noise now, but the setup is getting interesting.
Beer volumes are soft, but Modelo and Corona remain dominant, and margin strength hasn’t cracked.
With premiumization still in play and a loyal customer base, this is one of those names that could quietly rerate on even a modest demand rebound.
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Everything Else
Buffett Adds to Beaten-Down Bets – Warren Buffett quietly picked up shares of a battered company while trimming Apple, signaling where he sees the deepest long-term upside now.
Insiders Buy $1 million in High-Yield Energy – Executives stepped in to scoop nearly $1 million of stock in a high-dividend energy name, hinting at confidence in the stability of cash flows.
Activist Targets Kenvue – Sachem Head Capital built its stake in Kenvue, betting management changes could unlock value in the consumer health spin-off.
Starboard Doubles Down on Salesforce – The activist fund added more shares after earlier pushing for operational improvements, a classic value activist move in big tech.
Burry Turns More Bullish – Michael Burry increased his equity exposure in Q2, suggesting fresh opportunities in underpriced, out-of-favor sectors.
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
