One travel software company grew first-half revenue by more than a third while nearly halving its loss. Now management has set another 30% growth target. The stock barely reacted to the last set of numbers.

Healthcare

The Cooper Companies, Inc. (NASDAQ: COO) faces fresh pressure after activist shareholder JANA Partners demanded an external CEO search, board changes, and asset sales. The proposals include evaluating sales of fertility and medical-device assets and engaging potential buyers for CooperVision.

At approximately $55, Cooper trades near 12.1 times its reduced fiscal 2026 adjusted earnings guidance of $4.51 to $4.55 per share. Management also reaffirmed a cumulative free-cash-flow objective exceeding $2.2 billion across fiscal 2026 through 2028, supporting a potential sale.

Quarterly free cash flow increased 66% to $273 million, adjusted EPS rose 4%, and adjusted operating margin reached 26%. Fertility organic sales grew 5%, giving you evidence of resilient profitability beneath the disappointing headline growth.

The Businesses May Be Worth More Separately

JANA argues that Cooper’s assets would command higher valuations under different ownership. A credible offer could establish that gap, while manufacturing savings and better inventory management could improve earnings without a transaction. Leadership changes would add another route to rebuilding confidence in forecasts that have repeatedly disappointed.

The Board Already Rejected Available Offers

Another earnings reset would put your return at risk, especially while CooperVision’s U.S. inventory reduction continues to affect Q4. The board recently retained CooperSurgical because bids were inadequate, with competition and fertility litigation weighing on valuations. The discount offers a starting point, but closing it requires better execution or an offer that justifies selling.

Industrials

Crane NXT, Co. (NYSE: CXT) received fresh analyst backing after a manufacturing-facility visit highlighted historically high Currency backlog, win rates, and tender activity. More advanced anti-counterfeiting features are increasing its content per banknote, while planned capacity expansion provides room to meet demand.

At approximately $46, Crane trades near 10.6 times midpoint 2026 adjusted earnings guidance of $4.22 to $4.42 per share. Management’s cash-conversion targets imply an adjusted free-cash-flow yield of about 8.5% to 10.3%, providing discount support beyond a price target.

Q2 adjusted EPS increased 13% to $1.10, while Security and Authentication organic sales grew 9.6%. Quarterly free cash flow reached $73.4 million, so you are paying a modest multiple for a business with operating strength and cash generation.

Each Banknote Can Carry More Value

Crane’s growth does not depend entirely on printing more cash. Increasingly complex security features can raise revenue per note, while a shift toward higher denominations supports demand for those technologies. Converting orders into shipments would strengthen earnings, and using the resulting cash to repay debt could help close the valuation gap.

Expansion Comes With a Funding Burden

Net debt stood near $1.25 billion, and weakness in payment equipment and acquisition integration remains a concern. Additional capacity requires spending before contributing earnings. The low multiple offers room for a recovery, but protecting your capital requires cash generation to support expansion and reduce borrowing.

Advertising

Taboola (NASDAQ: TBLA) announced an offer to acquire Dianomi, adding relationships with financial advertisers and publishers including Charles Schwab, Bank of America, and Reuters. The proposed deal gives its Realize advertising platform more access to audiences seeking business and financial information.

At approximately $3.70, Taboola has a market value near $1 billion. After subtracting June’s net cash, enterprise value is roughly four times the midpoint of 2026 adjusted EBITDA guidance of $228 million to $240 million, before accounting for the acquisition.

Q2 revenue increased just 2.4%, leaving you with a muted first impression. Adjusted EBITDA grew 22.8% to $55.5 million, as margins improved. The operating picture is stronger than sales growth alone suggests.

Premium Relationships Could Expand Advertising Spend

Dianomi brings a specialized network that Taboola can connect to Realize. Successful integration could encourage financial advertisers to spend more across the combined publisher base. Existing publisher wins are also expected to begin contributing in Q4 and expand in 2027. Delivering that growth while repurchasing shares would give the valuation discount a practical route to narrowing.

Cash Flow Must Catch Up With Profitability

Google policy changes have already disrupted one product, and weaker publisher traffic remains a threat. Stock compensation can dilute your share of future earnings, while adjusted EBITDA excludes that expense. Q2 free cash flow fell to $17.3 million from $34.2 million. The low multiple looks attractive, but stronger recurring cash generation is needed to support a lasting recovery.

Navan (NASDAQ: NAVN)

Navan grew first-half revenue by more than a third while cutting its net loss roughly in half. Management is now calling for another 30% growth quarter, and three analysts raised their targets in August. The shares barely responded.

That disconnect gets more interesting when you look at what comes next. Management expects third-quarter revenue of $253 million to $255 million and raised full-year guidance to $927 million to $933 million. The business is still relatively new to the public market, so there is not a long history to lean on. That makes the next few quarters especially useful. Navan now has to show that strong growth can keep translating into a better financial profile.

CarMax (NYSE: KMX)

Used-car buyers have had plenty of reasons to stay cautious. Higher financing costs have pushed some shoppers toward cheaper vehicles while keeping others off dealer lots entirely. CarMax sits directly in the middle of that pressure, which helps explain why expectations around the stock are already fairly subdued.

Its financing business is just as important. CarMax Auto Finance originated about $8 billion in auto loans last fiscal year and ended the year with a $16 billion portfolio. That makes financing the piece worth watching. If borrowing conditions improve, CarMax could get some help from both sides of the business. It does not need used-car shoppers to suddenly go wild. It needs them to come back.

ACADIA Pharmaceuticals (NASDAQ: ACAD)

ACADIA is already past the stage where the entire story hangs on one approval. Two commercial products are generating revenue today, and the latest quarter gave management room to raise its outlook. Second-quarter revenue reached $310 million, while net income came in at $32 million, or $0.18 per diluted share.

Another piece of the story is emerging. European regulators issued a positive opinion for trofinetide in Rett syndrome, opening another potential market for DAYBUE. That gives ACADIA more than one way to grow. The interesting part is that the business keeps adding pieces while the stock has been much less enthusiastic.

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