While the spotlight stays glued to AI and crypto pivots, value is mounting a quiet comeback; led by cash-flow machines and buyback giants hiding in plain sight.

This week, we’re zeroing in on overlooked names that are finally getting their moment.

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Industrials

General Motors (NYSE: GM) is trading at just 4x forward earnings, and management is taking full advantage.

In the face of tariff uncertainty, volatile sentiment, and post-earnings noise, the automaker has leaned hard into one clear signal: buybacks.

Despite beating Q2 expectations, shares dropped 8% as investors digested Trump’s new Japan trade deal and ongoing tariff risk for Korea and Mexico. Yet the real story is capital efficiency.

GM resumed buybacks in July after a brief pause and now has $4.3 billion in repurchase firepower remaining. Since 2020, GM has retired over 550 million shares, shrinking the float by more than a third.

The result? With $11 billion in expected free cash flow, GM could feasibly cut another 400 million shares over the next two years.

That alone could drive EPS toward $20 by 2027, up from sub-$10 levels today, even if revenue stays flat.

Valuation, execution, and capital allocation are rarely this aligned in a legacy industrial.

While headlines chase EV startups and trade policy swings, GM is doing the one thing cheap stocks should: return cash while no one’s paying attention.

This setup reminds me of what real value looks like when it’s ignored.

Utilities

Duke Energy (NYSE: DUK) has been quietly outperforming, and the setup keeps improving. After a strong Q1 earnings beat ($1.76 vs. $1.59 est.), analysts have nudged Q2 and full-year estimates higher, with FY2025 EPS now forecast at $6.33.

That quiet confidence, paired with a 3.55% dividend yield, makes it one of the more compelling utilities in the tape right now.

Duke’s profile checks every box for a defensive rotation: low beta, stable earnings, and a steadily rising dividend (up to $1.065 quarterly).

Analysts have raised price targets across the board, now averaging $127.25. Shares are hovering around $120, offering upside without overextension.

Institutional flows are catching on, and retail is waking up to the fact that not all utilities got overvalued during the last rate cycle.

Duke’s payout ratio is manageable, debt profile is stable, and guidance remains grounded. This isn’t a growth name, but it’s not dead money either.

Names that quietly outperform without drawing headlines often deliver the most reliable returns. Duke is shaping up to be just that, especially if rates soften and capital rotates back into income.

Sometimes the best moves are the ones barely noticed until they’ve already worked.

Mortgage REITs

Two Harbors Investment (NYSE: TWO) might be this quarter’s biggest redemption play in mortgage REITs. After a disastrous Q1 – negative revenue, a 110% YoY drop, and a massive EPS miss – the bar couldn’t be lower.

Yet heading into Monday’s report, analysts are projecting a full recovery: $114 million in revenue and $0.36 EPS, flat YoY.

Importantly, estimates have held firm for 30 days. That kind of freeze often signals that sell-side desks are bracing for a non-disaster.

Meanwhile, peers like PennyMac and Ladder both reported soft quarters, but REIT sentiment is climbing anyway, sector averages are up 4% this month. TWO, by contrast, is still down 1.7%.

The setup here is all about dislocation. With a $12.57 average price target and shares stuck under $10.50, any hint of earnings normalization could create fast upside. This isn’t a core holding, this is a reset trade.

But that’s often where the most asymmetric moves start.

If Two Harbors clears a low bar with stable results, the move back to consensus could be sharp. This is one of the rare spots where I’ll take a chance before the crowd rotates back in.

Photronics (NASDAQ: PLAB): Chip stocks are screaming higher, but Photronics is still flying under the radar. 

The stock trades at just 10.2x earnings with a $1.2 billion market cap - dirt cheap for a company posting consistent growth and sitting in the crosshairs of the semiconductor upcycle.

Momentum is quietly building. Institutions are stepping in, and insiders are buying at multi-month highs.

Photronics plays a niche role in photomasks, which are essential for chip production. Demand is sticky, margins are expanding, and guidance has remained steady even as peers wobble. 

Despite the tailwinds, the stock has yet to break out like other semi names. Technicals are coiling near resistance with RSI and MACD both pointing north.

A clean move above $30 could unlock a fast run toward the mid-$30s. For value investors hunting a chip name that hasn’t already gone parabolic, this is one of the best setups on the board.

Citizens Financial Group (NYSE: CFG) is breaking out while the rest of the regional banks are still nursing scars.

Shares just tapped a 52-week high on the back of a solid Q2 beat, a $1.5 billion buyback plan, and heavy insider buying, including a $1 million personal buy from the CEO.

The bank trades at 15x earnings with a PEG of 0.54 and a 3.4% yield; rare metrics in a sector that’s been punished for overexposure and underperformance.

Loan quality is holding up, and deposit flight fears have cooled.

Momentum is back in the chart. Upgrades are stacking. And retail inflows are starting to show up. CFG won’t double overnight, but it doesn’t have to.

If rates stay higher for longer and capital rotates back into financials, this is the kind of high-quality name that gets scooped up first. Quietly one of the best setups in regional banking.

Enterprise Products Partners (NYSE: EPD) is the income investor’s dream, but the growth crowd may want to start paying attention too.

With a 7%+ yield, A-rated balance sheet, and a $7.6 billion project pipeline, this isn’t just a defensive name.

The midstream giant is set to report earnings this week, and expectations are modest, making it a prime candidate for a beat. Cash flows are strong, capex is disciplined, and debt is trending lower. 

Add in rising natural gas volumes and stable fee-based contracts, and you’ve got a name that could surprise in both income and growth.

Technicals are solid, with support building in the low $28s and a clear path to $30+ on a good report.

Analysts are starting to catch up, and institutions are holding tight. If you’re looking for ballast with upside, EPD checks every box.

That’s a wrap for today’s value rundown. Got feedback or a sleeper stock on your radar? Hit reply, we read every one.

Best Regards,
—Noah Zelvis
Undervalued Edge