Three undervalued names this week, starting with the Permian’s lowest-cost operator heading into a Q2 print on August 3 with a $6 EPS consensus that was set when oil was $20 lower.
Read on, and you will see two more setups where the discount is just as real, and the catalysts are just as close.
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Telecom
Verizon’s Subscriber Beat Turns a 6% Yield Into More Than an Income Story
Verizon Communications Inc. (NYSE: VZ) delivered a cleaner second quarter than the revenue line suggests. Adjusted earnings reached $1.30 per share, while 184,000 postpaid phone additions came in well above expectations and reversed the subscriber weakness hanging over the stock.
Management also raised full-year adjusted earnings guidance to $4.99 to $5.04 per share and lifted expected free cash flow growth to 9% to 10%. Mobility and broadband service revenue guidance rose, giving the market fresh evidence that simpler plans and lower churn are helping the core business.
Verizon still trades near 8.5 times forward earnings and carries a dividend yield above 6%. You are getting a low valuation, a large income stream, and early signs that operating momentum is improving at the same time.
Subscriber Growth Is Finally Doing More Work
The 184,000 phone additions matter because Verizon did not acquire them through a costly promotional spree. Lower equipment sales hurt total revenue, but better retention and stronger service revenue improve your odds that these customers produce healthier returns over time.
The Yield Now Has Operating Support
Revenue still missed expectations, customers are upgrading phones less often, and competition remains intense. Even so, you no longer have to rely on the dividend alone, because stronger subscriber trends, higher guidance, and better cash flow give the valuation a second reason to rerate.
Biopharmaceuticals
MannKind’s 10-Second FDA Win Leaves an 81% Upside Gap
MannKind Corporation (NASDAQ: MNKD) trades near $4.20 after the FDA approved Furoscix ReadyFlow for adults with fluid overload caused by heart failure or chronic kidney disease. The autoinjector delivers an IV-equivalent dose in 10 seconds or less, replacing the five-hour administration process used by the existing Furoscix device.
Commercial availability is expected by the end of August. Furoscix already generated $15.5 million in first-quarter sales, giving MannKind an established product and physician network rather than forcing it to build a market from zero.
Wall Street’s average target sits near $7.59, leaving roughly 81% upside from the current price. You still need to separate the approval excitement from the harder question of whether a faster device can materially expand adoption.
A Faster Device Strengthens the Commercial Case
ReadyFlow gives patients an at-home option that can begin relieving symptoms within an hour. The simpler format strengthens your valuation case because it can reach patients earlier and reduce the burden tied to hospital-based treatment.
Fresh Capital Comes With a Cost
MannKind paired the approval with a $50 million private placement, while the company still carries substantial debt and remains unprofitable. You are buying a commercial launch with real potential, but coverage, physician adoption, dilution, and execution will decide whether the 81% target gap survives.
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Energy
Permian Producer Reports August 3 With $6 EPS Consensus Built When Oil Was $20 Cheaper
Diamondback Energy (NASDAQ: FANG), one of the lowest-cost Permian Basin oil producers, reports Q2 2026 earnings on August 3 after market close with a consensus EPS of approximately $6 on roughly $4.75 to $4.98 billion in revenue, both significantly above the year-ago quarter. WTI crude has crossed above $100 on sustained Hormuz tensions, and the gap between where oil is now and where those estimates were built is the setup you want to know about.
FANG operates in the lowest quartile of Permian cost structures, which means every dollar of crude above the estimate-building price flows through to margin disproportionately. Any ceasefire removes the $100 crude floor fast, and Permian names move in both directions quickly. That is the tradeoff.
Estimates Were Built When Oil Was Cheaper
The Q2 consensus was established when crude was trading meaningfully below $100. That delta between estimate-building price and current oil is what creates the upside surprise potential on August 3 if crude stays where it is.
Lowest-Cost Structure
Operating in the lowest quartile of Permian costs means FANG captures more incremental margin at $100 oil than almost any comparable name. That advantage makes this oil price environment more impactful here than the EPS consensus reflects.
Actionable Picks This Week
Toll Brothers (NYSE: TOL)
Toll Brothers is the nation’s leading luxury homebuilder and the stock trades below where the resilience of the luxury end of the housing market deserves to price it. Luxury homebuyers are far less sensitive to mortgage rates than entry-level buyers, and management has been beating estimates consistently while the market prices of the company like the whole housing market froze.
Any confirmation on the August earnings call that order trends held up or improved through the July quarter is the catalyst that re-rates a name that has been sitting in limbo. The risk is that even the luxury end softens if rates stay elevated longer than expected and inventory builds faster than new order demand can absorb it.
Sealed Air (NYSE: SEE)
Sealed Air reports August 3, and this is a packaging name that spent two years being treated as a broken business while management’s cost-out program was quietly doing what it promised. You are getting a global packaging leader at trough multiples right as customer destocking finishes working through the system, and free cash flow has stayed stronger than the share price implies it should.
A clean guide on August 3 is all it needs to get back on the radar for generalists who moved on. The risk is that volume weakness extends into the second half, and the margin improvement story becomes a 2027 setup rather than a back-half-of-2026 setup.
Sterling Infrastructure (NASDAQ: STRL)
Sterling Infrastructure has been the cleanest direct play on data center construction, with the E-Infrastructure Solutions segment doing the heavy lifting as hyperscaler capex runs at levels that show no sign of slowing. The stock is up meaningfully year to date but still trades at a discount to where a business with a project pipeline this durable and a backlog this strong would normally clear on forward earnings.
Every new hyperscaler data center announcement is a potential project for Sterling, which is the kind of visibility that tends to command a premium once the market fully prices the backlog depth. The risk is that project timing slips or labor and materials costs compress margin in a way that surprises the construction revenue ramp the current multiple assumes.
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Fast Movers to Watch
Matson (NYSE: MATX) Matson runs dominant ocean shipping routes to Hawaii and Alaska plus expedited China-to-US lanes, and freight rates have firmed because Red Sea rerouting is adding distance and time to competitor routes in a way that is not seasonal.
Analysts are still modeling rates that look conservative against what the current rerouting environment actually supports, which means any Q2 positive surprise on pricing is upside that the consensus has not baked in.
August 3 is where the freight rate improvement the industry data has been pointing to either shows up in the numbers or does not.Cabot Corporation (NYSE: CBT) Cabot is a specialty chemicals business where both the reinforcement materials and battery materials segments are showing genuine signs of stabilization after a rough stretch, while the company trades at a discount to specialty chemicals peers with more durable end-market demand than most commodity chemical alternatives.
The August 3 print gives you management’s update on both segments, and any improvement in tire demand or battery materials pricing is a clear positive for a setup where the multiple discount is the primary argument and execution is the catalyst. This one is quiet but interesting.Chemours (NYSE: CC) Chemours has been priced like a liability parking lot for years because of the PFAS overhang, and the actual three-segment business in titanium technologies, thermal solutions, and advanced performance materials has been running underneath all that noise while the stock sat at trough multiples.
Recent PFAS lawsuit developments suggest a comprehensive settlement is closer than it looked twelve months ago, and once that liability number is fixed, the discount the unknown future liability has been imposing on the multiple disappears.
The advanced performance materials segment serving semiconductors and hydrogen fuel cells is the part growing fastest while everyone stares at the legal calendar.
When you find a stock trading at a 50%+ discount to your intrinsic value estimate, what's your biggest concern?
Everything Else
A free report names a handful of small companies showing real early growth signals before the crowd, the headlines, and the big moves hit.
Enphase Energy reports Q2 2026 earnings tonight after the market close, with analysts watching for second-half order book improvement commentary and updates on the IQ9 microinverter with gallium nitride technology launch timeline.
WTI crude oil held above $100 per barrel as Houthi attacks on Red Sea commercial shipping and ongoing Strait of Hormuz tensions kept the Middle East risk premium firmly embedded in energy prices.
Comstock Resources reports Q2 2026 earnings on July 29, heading into the print with a 25% discount to GF fair value and analyst estimate revisions tracking lower on natural gas price pressure ahead of the LNG buildout inflection.
That's our coverage for today; thanks for reading! Reply to this email with feedback or any value stocks you want me to check out.
Best Regards,
—Noah Zelvis
Undervalued Edge
