Markets are still wrestling with mixed macro signals, but value keeps finding a way to surface in unexpected corners.

Airlines, cloud software, and even packaged foods each delivered headlines this week that show how sentiment and fundamentals don’t always line up. 

For value-driven investors, those gaps create opportunity, and this issue highlights where the mispricing looks most compelling right now.

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Industrials

Delta Air Lines is back in the spotlight after reporting first-quarter results that smashed expectations.

The airline posted $12.6 billion in revenue and $288 million in adjusted net income, with EPS at $0.45 versus $0.36 expected.

What’s driving this outperformance is a steady recovery in corporate travel and a surge in international demand, which CEO Ed Bastian said has produced the “11 highest sales days” in company history year-to-date.

That’s a rare sign of strength in a sector still battling higher unit costs and Boeing delivery delays.

Importantly, Delta reiterated its full-year EPS forecast of $6–$7 and free cash flow of up to $4 billion, guidance that few other airlines are in a position to make.

Investors rewarded the update with a 12% stock pop over the week, making DAL one of the best-performing transport names in 2024. 

With Boeing’s ongoing manufacturing troubles delaying new aircraft until at least 2027, Delta’s disciplined fleet management and emphasis on premium cabins could cement its status as the most profitable U.S. carrier this year.

The market has started to price in that resilience, but at 8x forward earnings, I’m going to say there’s still more room to climb.

Information Technology

NICE Ltd. has become a quiet beneficiary of Wall Street’s AI obsession.

The Israeli cloud software provider reported Q2 revenue of $726.7 million, a 9% year-over-year increase, while EPS came in at $3.01, slightly above consensus.

The real driver, however, was cloud growth, up 12%, powered by its AI-focused CXone and Enlighten platforms.

Management raised full-year EPS guidance and highlighted a 42% jump in annual recurring revenue from AI self-service solutions, underscoring strong momentum in digital customer engagement.

Institutional investors are taking note: Lazard doubled its stake last quarter, and AllianceBernstein lifted holdings by over 1,000%.

Yet despite this buying pressure, NICE trades at under 20x earnings, a steep discount to the tech sector median near 28x.

Analysts remain bullish, with targets stretching to $300, reflecting ~40% upside.

The stock has bounced since earnings, but investors still appear hesitant to pay up for an AI story that isn’t branded like Microsoft or Nvidia. 

For contrarians, that under-the-radar positioning may be exactly what makes NICE attractive, real AI adoption and sticky enterprise clients, at a valuation that hasn’t been inflated by hype.

Consumer Staples

Post Holdings made headlines with a busy quarter: $1.98 billion in sales, $108.8 million in net income, a leadership succession plan, and the completion of a 4.3% share buyback.

The company also finalized the reintegration of 8th Avenue’s nut butter and granola business, aiming to push further into higher-margin categories.

Management raised EBITDA guidance to $1.5–$1.52 billion, reflecting resilience in foodservice and cold chain, even as core cereal and pet food volumes declined.

That volume weakness is still the elephant in the room, cereal sales fell nearly 5% and pet food dropped 13%, highlighting pressure in legacy categories.

Yet the aggressive buybacks, totaling 8% of shares this fiscal year, signal management’s confidence in cash flow and valuation.

Post is also set to benefit from tax code changes that will reduce cash taxes by $300 million over the next five years, giving it more room to invest or return capital.

At ~18x earnings, POST trades below consumer defensive peers, with analysts projecting ~$127 fair value (roughly 17% upside). 

The near-term story is about stabilizing core brands, but longer term diversification and capital returns could help Post win back investors who’ve grown skeptical of packaged foods.

Circle Internet Group (CRCL) has been one of the most polarizing new listings of 2025, and for good reason.

Shares are still up more than 500% post-IPO, yet the stock has been chopping lower since June as investors debate how much of the stablecoin hype is already priced in.

Beneath the volatility, there’s real business momentum: USDC is now officially recognized by regulators as a “covered stablecoin,” and the partnership with Fiserv on FIUSD could pull Circle deeper into mainstream payments.

Net income has been trending higher even as revenue dips, and with $44 billion in reserves tied to interest income, the company is highly levered to the rate environment. 

At a $33 billion market cap, the valuation looks stretched, but Circle is one of the few ways public investors can get pure-play exposure to digital currencies that actually have regulatory clarity.

If it can prove consistency beyond the initial surge, the upside is still meaningful, even if the ride remains bumpy.

Roblox (RBLX) has had no shortage of controversy this summer, but the stock keeps grinding higher.

Shares are up 237% over the last 12 months and more than 120% YTD, a remarkable run for a company still losing money on paper.

The latest headlines around safety issues and lawsuits haven’t derailed momentum, and analysts continue to revise targets upward with an average price objective of $142, about 8% above current levels.

Engagement on the platform remains sticky, the creator economy keeps expanding, and Roblox Studio is still one of the most powerful distribution tools for user-generated 3D content. 

Debt is high and public scrutiny is intensifying, but the company’s scale and ability to monetize make it hard to fade.

For growth-oriented value hunters willing to look past the noise, Roblox is still in a position where sentiment hasn’t caught up to operational strength.

Invesco QQQ Trust (QQQ) remains the cleanest way to own the Nasdaq’s megacap tech leadership, and its performance continues to dwarf the broader market.

Shares are up nearly 40% over the last 12 months, sitting at $577 and just shy of all-time highs. 

Since inception, QQQ has delivered a 1,100% total return versus roughly 660% for the S&P 500, and 2025 has only reinforced that gap as AI-related demand boosts its largest holdings.

The concentration risk is real, the top 10 positions now account for more than half the fund, and every one of them is tech.

That makes QQQ vulnerable if sentiment reverses, but the track record is impossible to ignore. 

With a low expense ratio and decades of consistent outperformance, QQQ remains the benchmark growth vehicle institutions and retail alike keep coming back to.

For long-term investors comfortable with the tech-heavy tilt, it’s still one of the clearest compounding machines available.

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