Cash flow, earnings strength, and revised guidance are driving momentum in overlooked names across tech, media, and finance.

Fundamentals are back in charge, and the market is finally starting to price them in.

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Information Technology

Micron Technology (NASDAQ: MU) is finally getting recognition for its position in the AI supply chain.

The company just raised its Q4 revenue outlook to $11.2 billion and its gross margin forecast to 44.5 percent, both above earlier guidance and analyst expectations. 

UBS maintained a Buy rating with a $155 target, while JPMorgan and Mizuho issued bullish revisions shortly after.

Micron has spent most of this year lagging behind Nvidia and AMD, but that may be changing quickly.

Pricing trends are starting to stabilize. DRAM remains firm, volatility in NAND is easing, and demand for high-bandwidth memory continues to build. 

Micron is one of the few U.S. chipmakers with direct exposure to infrastructure tied to AI, and recent performance shows that it is executing well.

Despite the recent run, the stock still trades at 24.6 times forward earnings with a PEG ratio of 1.5.

Risks still exist, especially around HBM delays, China demand, and potential inventory swings. But the broader narrative is shifting.

Micron is no longer seen as just a cyclical name. It is becoming a direct beneficiary of long-term AI hardware spending, and institutions are adjusting their models accordingly.

Momentum is building.

Entertainment

Disney (NYSE: DIS) posted stronger-than-expected numbers this week, reporting $1.61 in adjusted EPS on $23.65 billion in revenue.

Those figures came in ahead of Wall Street forecasts, but the bigger story is the shift in ownership happening quietly behind the scenes.

Vanguard, Northern Trust, and Bank of New York Mellon have all increased their stakes. The stock is now up more than 20 percent over the past three months.

Valuation remains compelling. The stock trades at 20.1 times forward earnings with a PEG ratio of 1.7 and a price-to-sales multiple under 2. 

Streaming losses are narrowing, the parks division is seeing record guest spending, and ESPN is leaning into sports betting with new partnerships.

Free cash flow came in at $2.4 billion, and management has confirmed plans to resume a dividend and buy back shares.

Several analysts have upgraded their outlooks. Goldman Sachs, UBS, and Barclays all have Buy ratings with targets ranging from $137 to $152.

That suggests there is still room for a further move higher.

This is no longer a turnaround story. Execution has stabilized, costs are in check, and multiple business units are trending in the right direction.

Smart capital is already repositioning.

Financials

M&T Bank (NYSE: MTB) delivered a solid Q2, reporting adjusted earnings of $4.28 per share compared to the consensus estimate of $4.04.

Revenue rose 5 percent year over year, and management raised the quarterly dividend by 11 percent to $1.50 per share.

That brings the current yield to 2.7 percent, backed by a conservative payout ratio of 35 percent.

While many regional banks are still working through the aftershocks of last year, M&T has kept a clean balance sheet and solid operating margins. 

Non-performing loans declined slightly, net charge-offs remain manageable, and credit quality held up better than analysts anticipated.

Non-interest income grew 13 percent, supported by continued strength in fee-based businesses.

The valuation still looks attractive. The stock trades at 9.2 times forward earnings and just above book value at 1.1 times.

Consensus analyst sentiment is slowly improving, with a new average price target of $218.50 and a high estimate of $240.

M&T doesn’t rely on hype or story-driven catalysts. It continues to post reliable earnings, expand shareholder yield, and allocate capital with discipline.

That is exactly the kind of profile long-only value funds are seeking right now. The quiet outperformance is starting to register.

Cable One (NASDAQ: CABO): This regional cable and internet provider is quietly showing value this week.

Shares trade at a forward P/E of just 4.0, a P/B of 0.64, and a P/S of 0.6 — well below industry averages — highlighting a steep discount.

The company is expected to post stable EPS on modest revenue growth, backed by strong cash flow, low debt, and a focused footprint in high-demand markets.

Analysts have nudged estimates higher, and past patterns suggest potential upside surprises. Despite these signals, the market hasn’t fully recognized CABO’s setup.

In short, solid fundamentals, disciplined management, and cheap valuation make this a quietly compelling turnaround watch. 

From my perspective, CABO isn’t just cheap on paper, it’s a cash-flow powerhouse quietly compounding value in a stable, subscription-driven business.

Zillow Group (NASDAQ: ZG): This housing-tech platform has been firing on all cylinders, with shares up nearly 54% over the past year and more than 140% over three.

Q2 results highlighted double-digit revenue growth and a 55% jump in net income, signaling solid execution in a challenging housing market.

While fundamentals are improving, the stock trades at a P/S of 8.5x, above the industry average, and a DCF model pegs fair value around $95, implying a modest discount.

Multiples are rich, but momentum is real.

For investors looking for exposure to the housing-tech rebound without chasing early-stage risk, ZG combines earnings growth with a clear market bid, making it a story worth watching. 

While the valuation screens are rich, Zillow’s ability to translate traffic into monetizable growth makes it more of a market-share story than a strict value play.

Shutterstock (NASDAQ: SSTK): This digital content platform is gaining attention as Getty Images advances its $3.7 billion acquisition, now under UK regulatory review.

Shares jumped 3% on the news, reflecting growing investor interest.

Growth has been modest, with customer spending softening and free cash flow margins tightening. Yet the merger could create meaningful scale and synergies in a competitive content market.

Trading at a forward P/E below the broader sector, SSTK doesn’t carry a frothy multiple — but it does offer strategic upside.

For investors seeking a tactical play on digital content consolidation, this one deserves a close look.

In my opinion, if the Getty acquisition clears, Shutterstock could see a meaningful rerating, turning near-term regulatory noise into long-term shareholder value.

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