The Street has decided artificial intelligence will chew straight through the advertising business, so it has priced the industry’s largest player like a closing-down sale.

Read on to see why seven times earnings, a dividend above four percent, and a savings target that just doubled make this a pitch that writes itself.

Medtech

Haemonetics Corporation (NYSE: HAE) has secured a much larger commitment from CSL Plasma than investors initially received in August. CSL now expects to install Haemonetics’ NexSys PCS equipment and purchase related disposables across all current U.S. collection centers by the end of 2027.

Even after a 17% share-price jump, Haemonetics carries a market value near $5.7 billion against roughly $291 million in trailing free cash flow. The resulting multiple sits near 20 times cash flow, while management continues guiding for 5% to 8% growth in fiscal 2027 revenue and adjusted earnings per share. Haemonetics also expects free-cash-flow conversion near 80% this year.

CSL operates more than 300 U.S. centers, turning the agreement into more than an equipment order. Once you separate the rollout from the disposable revenue generated by every future collection, the unmodeled value becomes much easier to recognize.

The Lost Revenue Can Return

CSL previously moved away from Haemonetics equipment, contributing to a broader group of portfolio transitions that removed approximately $153 million from fiscal 2025 revenue. Earlier analyst estimates suggested a complete CSL return could eventually add $183 million to $223 million in annual sales, before the company confirmed the rollout would cover the entire U.S. network.

The Timeline Still Matters

Management has not disclosed pricing, installation costs, rollout milestones, or the agreement’s expected earnings contribution. November’s quarterly update should provide the first financial bridge, but the missing economics belong in your downside work, particularly after the market immediately rewarded the announcement with a sharp rally.

Consulting

Booz Allen Hamilton Holding Corp. (NYSE: BAH) gained fresh support after Truist upgraded the shares from Hold to Buy and lifted its price target from $70 to $85. The firm believes pressure on civilian government spending may be approaching a bottom, creating room for earnings estimates to stabilize.

The stock trades near 11 times forward earnings and yields roughly 3.3%, a restrained valuation for a contractor carrying a $39 billion backlog. Booz Allen also generated $951 million in free cash flow during fiscal 2026 and returned substantial capital through dividends and repurchases.

The selloff largely reflects deep cuts across civilian agencies, yet national-security work now represents about 71% of the business and continues growing. The valuation puts a clear choice in front of you: treat federal weakness as permanent, or recognize that the revenue mix has already shifted toward more resilient work.

Security Work Provides a Stronger Base

Booz Allen reported $261 million in quarterly free cash flow, up from $96 million a year earlier, while adjusted EBITDA margin reached 11.9%. Continued demand for defense, intelligence, and cybersecurity work can protect earnings as civilian work resets, giving the company time to rebuild growth without depending on a rapid recovery across every federal agency.

Washington Still Controls the Risk

Roughly 97% of revenue comes from U.S. government contracts, leaving Booz Allen exposed to procurement delays, cancellations, and additional budget cuts. Fixed-price contracts can improve margins but also transfer more execution risk to the company.

Even so, your model must reconcile civilian weakness with the backlog, cash generation, and defense-heavy revenue mix before treating the current multiple as deserved.

Brokerage

Webull Corporation (NASDAQ: BULL) received fresh support today after Scotiabank upgraded the shares from Sector Perform to Sector Outperform. The firm kept its $9 price target and argued that the selloff following a congressional report had pushed the valuation too far. Shares had already fallen about 40% over the preceding month.

The stock recently traded near $5.95, giving Webull a market value of approximately $3.2 billion and leaving about 51% between the share price and Scotiabank’s target. At roughly 21 times forward earnings, the stock is not conventionally cheap, but its growth and improving profitability strengthen the relative-value argument.

The latest quarter changes the picture behind that multiple. A market value of $3.2 billion buys you access to 28.2 million registered users, a newly profitable operation, and a platform handling sharply higher trading volumes across 18 international markets. Those assets were expanding before the political controversy arrived.

Profit Arrived Before the Controversy

Revenue rose 51% year over year to a record $198.8 million, while adjusted operating profit climbed 169% to $62.6 million. The resulting 31.5% adjusted operating margin shows that higher activity is producing real operating leverage, not just user growth. GAAP net income also turned positive at $24.4 million.

The Political Risk Is Real

The congressional report cannot be dismissed. It raised questions about Chinese ownership connections, data security, and possible regulatory intervention, while competitors began courting Webull customers. Those allegations deserve a separate line in your risk model. Still, the cash balance, improving margins, and record revenue make the current discount more complicated than a simple political warning.

Omnicom (NYSE: OMC)

Omnicom helps brands plan and buy their advertising, make the ads themselves, and run the campaigns afterward. Clients pay it to get their name in front of the right people, and it takes a cut.

It closed its merger with Interpublic in November 2025 and became the world's largest advertising group by scale, but its shares have gone nowhere pleasant since, caught between integration risk and widespread worry that AI will hollow out agency work.  

Management doubled its merger savings target to $1.5 billion over thirty months, and is aiming for roughly $900 million of it by the end of this year. About a billion of that comes from staffing, with the rest from consolidating offices and cutting IT and procurement costs, and the finance chief has been clear that AI is not the primary driver.

You are paying around seven times forward earnings for the biggest player in the industry and collecting a dividend above four percent while you wait. Third quarter results land October 20.

Travere Therapeutics (NASDAQ: TVTX)

Travere makes FILSPARI, a once-daily pill approved to slow kidney decline in adults with IgA nephropathy and to reduce protein in the urine for patients eight and older with a kidney condition called FSGS.

It was the first medicine approved for that second one, which is not a small thing in a disease area where most attempts fail. The drug is selling well, with US sales of $141.1 million in the second quarter, up 96% from a year earlier, and a patent allowance that would cover certain uses in IgA nephropathy into October 2037.

The stock has run hard over the past year and then sold off after the company announced a new chief executive arriving December 1 from another rare-disease biotech. Meanwhile, the data kept getting better.

Results released October 2 showed protein in the urine down 48% at week 108 against 27% for the older comparison drug, with kidney failure at 2% versus 8%, and nine more presentations follow at a big nephrology meeting in Denver from October 21 to 25. Third quarter results are expected October 29.

Corebridge Financial (NYSE: CRBG)

Corebridge sells annuities and life insurance, collecting your money now and investing it to cover what it owes you later.

Higher interest rates help, because maturing bonds get reinvested at better yields, though how much that helps depends on what the company is paying out on the other side of the ledger.

The stock trades at roughly 6.7 times forward earnings and yields close to three percent, which is a low price for a business this predictable.

Analysts have a consensus target around $40, about sixteen percent above where it sits now, and the company bought back $300 million of its own stock last quarter while returning $412 million to shareholders in total. Third quarter results arrive November 2 after the close.

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