Frozen potatoes aren't glamorous, which may be why a guidance raise earlier this month has left shares still well short of their 52-week high. 

Keep reading to find out why the dull end of the freezer aisle is worth a look at this price.

Entertainmnet

Mattel, Inc. (NASDAQ: MAT) gained fresh backing after Seaport Research upgraded the shares from Neutral to Buy and assigned a $20 price target. The firm expects the toy group to earn higher valuation multiples and said its recommendation does not depend on Mattel being acquired.

Mattel recently traded around $16.70, giving the company a market value near $4.8 billion. The shares trade around 10 times expected earnings, below the industry’s roughly 14 times multiple, while reported takeover interest from Authentic Brands has placed a value above $20 per share on the company.

Brand ownership matters because Barbie, Hot Wheels, Fisher-Price, and American Girl can support licensing, films, games, and merchandise beyond traditional toy sales. Current earnings alone will not tell you what those assets might command inside a larger entertainment or licensing platform. That gap sits at the center of today’s discount.

The Brands Create More Than Toy Sales

Ariel Investments, which owns 5.4% of Mattel, has urged the board to consider asset sales, a merger, or a complete sale. Incoming CEO Roger Lynch therefore inherits more than a margin-repair assignment. He also faces direct pressure to prove that Mattel’s brands are worth more together than outside buyers appear willing to pay.

Weak Margins Still Matter

Operating income has declined for six consecutive quarters, and tariffs, inflation, and heavier promotional spending continue pressing margins. A takeover is also uncertain, so the stock cannot rest entirely on deal speculation. The $20 approach supports the headline, but your base case should still stand on brand value, cash generation, and eventual operating repair.

Automotive

Stellantis N.V. (NYSE: STLA) received a fresh opening after the European Union and China agreed to cap Chinese hybrid-vehicle imports at approximately 350,000 units annually. Imports were heading toward 800,000 vehicles this year, so the agreement could ease considerable pressure on European manufacturers.

The stock trades near five times forward earnings and roughly 0.25 times book value, while its market capitalization sits near $13 billion. Second-quarter revenue increased 13% to €43.5 billion, and industrial free cash flow recovered to €1 billion, providing early evidence that the restructuring is producing measurable results.

Stellantis also holds a useful position on both sides of the trade agreement. The quota limits imported competition, while the Leapmotor partnership provides access to lower-cost Chinese technology and European production. At five times forward earnings, the discount compensates you for a difficult turnaround without requiring perfection from every new model.

Local Production Changes the Competitive Equation

Management plans dozens of new models through 2030 and targets €6 billion of annual cost reductions by 2028. Its affordable European EV push includes vehicles priced near €15,000, while local Leapmotor production can reduce tariff and quota exposure. That combination gives Stellantis a route to compete on price without relying only on its older brands.

Market Share Must Follow the Models

European sales and market share remain weak, and management still expects industrial free cash flow to turn sustainably positive only in 2027. Chinese manufacturers can also move production into Europe, weakening the quota’s protection over time. Execution uncertainty still belongs in your discount rate, even after the agreement improves the competitive setup.

Materials

Albemarle Corporation (NYSE: ALB) gained fresh recognition today when Morningstar included the lithium producer among its top undervalued stocks for the fourth quarter.

A separate $2 billion supply agreement between EnergyX and Trafigura also offered current evidence that stationary battery storage is becoming a major source of lithium demand beyond electric vehicles.

At about $98, Albemarle carries a market value near $13.4 billion and trades roughly 51% below Morningstar’s $200 fair-value estimate. Second-quarter sales rose to $1.7 billion from $1.3 billion, while adjusted EPS climbed to $3.75 from just $0.11 as higher lithium prices and stronger volumes restored profitability.

The market is still treating Albemarle primarily as a volatile electric-vehicle supplier. Today’s ten-year EnergyX agreement gives you a concrete sign that utility batteries and data-center power systems are creating another demand channel while Albemarle keeps capital spending disciplined.

Storage Demand Broadens the Recovery

Stationary storage helps reduce Albemarle’s dependence on the pace of global electric-vehicle adoption. Battery installations needed to stabilize power grids and support expanding data centers could absorb more lithium even when vehicle sales remain uneven, strengthening the earnings recovery without requiring a return to the commodity’s former peak.

Lithium Prices Still Set the Pace

Lithium fell nearly 6% today and about 17% over the past month, leaving Albemarle exposed to another sharp pricing decline.

High-cost processing operations and commodity volatility also limit visibility, but a $98 share price already reflects deep skepticism, while rising storage demand and improved earnings give your decision a firmer operating foundation.

Lamb Weston (NYSE: LW)

Lamb Weston freezes potatoes. That is the business. It cuts them, freezes them, and ships them to restaurants, which is why a great many of the fries you have eaten out came from a company you have never thought about once.

Results on October 6 were good enough that management raised its full-year outlook on sales, earnings and EBITDA. North America did the heavy lifting, with volumes up for a seventh consecutive quarter and segment profits climbing on much better plant utilization.

Europe is the other half of the story, and it is ugly, with sales, volumes and profits all falling on weak demand and underused factories, which is why company-wide EBITDA still slipped.

Being one of the few suppliers big enough to serve national chains is its own kind of moat. Shares jumped on the news and remain nearly 29% below their 52-week high, at roughly fifteen times forward earnings with a dividend above three percent and double-digit upside to the average analyst target.

Celanese (NYSE: CE)

Celanese makes specialty chemicals, the kind that end up inside car parts, paints, cigarette filters and medical devices. It is one of the least loved names in the sector, because volumes have been soft and the company took on real debt buying a materials business from DuPont. Here is the thing worth noticing: it does not need a boom.

It needs volumes to stop falling while cash goes to the balance sheet, and management is working that angle hard, aiming to cut net debt to three times operating EBITDA and refinancing last December to push its nearer-term maturities out.

You are paying under eight times forward earnings for that, against an average analyst target around forty percent higher. Third quarter results come November 3.

Alcoa (NYSE: AA)

Alcoa digs up bauxite, refines it into alumina, and smelts it into aluminum, about as direct a bet on metal prices as you can buy.

That cuts both ways, and the last year has been the bad way, with the stock sitting at roughly half its 52-week high. What makes it interesting is the gap between that price and the published targets, which average more than forty percent higher, with most covering analysts rating it a Buy. 

You are paying a single-digit earnings multiple for a metal that grid buildouts and data centers both need in quantity, though commodity demand can always soften. Third-quarter results land after the close on October 15, the nearest catalyst here.

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