Surgeons spend years getting fluent on a single device platform, and hospitals build their procedures around it. One company in exactly that position just added another approval to the pile. Read on for what the market missed.

Online Gaming

DraftKings Inc. (NASDAQ: DKNG) gained fresh support today after Bank of America upgraded the stock from Neutral to Buy while keeping a $27 target. The firm believes a 47% share-price decline has improved the risk-reward balance as earnings estimates approach a possible floor.

With enterprise value near $10.2 billion, DraftKings trades at roughly 10 times the approximately $1 billion of adjusted EBITDA management expects from its core business before prediction-market investment.

Full-year company guidance remains $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA.

The overlooked element is DKeX, DraftKings’ prediction-market exchange. Regulatory acceptance would open another revenue channel, while restrictions could reduce investment needs and fears of sportsbook cannibalization.

That two-sided setup asks you to separate temporary spending pressure from lasting damage to the company’s earnings power.

The Sportsbook Is Still Expanding

Second-quarter sports volume increased 15% to $13.1 billion, and monthly unique payers rose 9% to 3.6 million. Revenue fell 5% because customer-friendly results and heavier promotions reduced sportsbook margins, but higher activity suggests the operating base remains intact as the NFL and college football seasons accelerate.

Predictions Come With a Price

Bank of America lowered its 2026 EBITDA estimate to $500 million because spending on Predictions could exceed previous expectations. Competition, regulatory disputes, and continued promotions can delay stronger cash generation.

The upgrade strengthens the rebound case, but execution on customer economics must earn your confidence before the lower valuation deserves full credit.

Specialty Vehicles

Oshkosh Corporation (NYSE: OSK) added another international defense order today, covering 50 HET A1 tractors and 50 heavy-duty trailers for the Royal Moroccan Armed Forces. The deal includes parts, training, and support services, extending a customer program with vehicles already operating in the field.

The company carries a market value near $9.1 billion and trades at roughly 11 times forward earnings and 8.6 times enterprise value to EBITDA. Management expects approximately $11.2 billion in 2026 sales and adjusted earnings of about $11 per share.

Defense is only one source of demand. Access-equipment backlog stood near $2 billion after Q2, while the Vocational segment held approximately $6.62 billion.

Reading the multiple alongside more than $8.5 billion of scheduled work helps you distinguish near-term execution pressure from a collapse in underlying demand.

The Backlog Extends Beyond Defense

Second-quarter sales increased 6.7% to $2.92 billion, led by 9.4% growth in Access equipment. Oshkosh is also increasing production of postal delivery vehicles and modernizing fire-truck manufacturing, giving the company several ways to convert its backlog into higher revenue instead of relying on a single defense contract.

Margins Still Need Repair

Adjusted operating income declined 17.7% in Q2 as manufacturing costs and product mix weakened profitability. Management also reduced full-year adjusted EPS guidance by about 50 cents, and slower fire-truck throughput remains a concern.

The valuation offers room for recovery, but your entry price must still reflect the possibility that factory improvements take longer than expected.

Marine Transportation

SFL Corporation Ltd. (NYSE: SFL) has ordered two very large ammonia carriers and secured long-term charters with an investment-grade European oil major. The $216 million vessels are scheduled for delivery in 2028, while the initial contracts add at least $162 million to fixed-rate backlog.

The stock trades at about $1.9 billion and roughly 9.6 times trailing free cash flow, for a yield above 10%. Its $0.88 annual dividend provides another 6.5% yield, supported by quarterly payments that have continued since the company’s 2004 listing.

SFL had already accumulated approximately $4.6 billion of contracted revenue across multiple vessel categories and customers before this agreement. Instead of depending entirely on unpredictable spot rates, you are buying into a fleet where much of the future income has been fixed years in advance.

The Ships Arrive With Customers Attached

The new carriers move SFL into a different segment without forcing management to build first and search for demand later. Charter revenue begins when the ships enter service, and the minimum backlog can increase after the customer selects the final contract duration within the next six months.

Debt Still Controls the Risk

SFL remains highly leveraged, with debt near 5.6 times EBITDA and thin interest coverage. Construction delays, rising financing costs, or trouble at a major charterer could strain cash flow.

Even so, the double-digit cash-flow yield, 6.5% dividend, and several years of contracted revenue support the discount argument, though leverage deserves the final word before SFL enters your portfolio.

Edwards Lifesciences (NYSE: EW)

Edwards makes replacement heart valves, including ones surgeons can thread up through an artery instead of opening a chest. On October 1, the FDA approved its AUTUS valve, the first surgical pulmonary valve designed to be expanded after implantation as a child grows, which may reduce the need for repeat open-heart surgery.

The stock barely moved and sits roughly 11% below its July high, with the average analyst target around $100.

Medical device platforms get sticky once surgeons are trained on them and hospitals have built their procedures around the equipment, which makes switching genuinely awkward even when a rival product is perfectly good. 

AUTUS serves a small market on its own, but it follows last December’s SAPIEN M3 mitral approval and shows the pipeline beyond the core franchise is producing. Q3 results land October 29 after the close, and the mitral ramp will be the better clue to how fast the newer franchise contributes.

SPX Technologies (NYSE: SPXC)

SPX sells cooling systems, air management equipment and detection gear into data centers, commercial buildings and infrastructure projects. The stock sits roughly a third below its June high and touched a fresh 52-week low last week, which is a hard drop for a business whose numbers have been going the other way.

Its heating and cooling backlog reached around $919 million by the second quarter, after climbing 38% organically in the first, with data center cooling driving most of that growth.

Backlog is the useful number here because it tells you what has already been ordered rather than what management hopes to sell. Q3 lands October 28 after the close. Be honest with yourself about the volatility though, since shares fell sharply the day after July’s results. The obvious risk is a softer outlook on data center cooling orders, so size it accordingly.

Carpenter Technology (NYSE: CRS)

Carpenter makes specialty alloys and titanium used in aerospace, defense, medical and industrial applications. Management has said its engine customers worry more about available capacity than about demand, which is a rare and rather nice problem to have, and the company’s brownfield expansion is not due to finish until the start of fiscal 2028.

That scarcity gives Carpenter room to capture pricing and mix improvements while demand stays strong.

The stock has fallen more than a third from its summer high even though the company closed fiscal 2026 with record operating income and guided to another 21% to 25% increase in fiscal 2027.

That gap between the share price and the operating numbers is the actual argument here. First quarter results land October 22 before the open, and the question is whether management keeps that fiscal 2027 trajectory intact as aerospace demand accelerates.

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