There are only 63 companies expected to report earnings this coming week (12/19 – 12/23) and only a few are trading well above their intrinsic value. Finbox.io fair value estimate data shows that five of these 63 companies have a negative 15% or more margin of safety: Neogen Corporation (Nasdaq:NEOG), Conagra Brands (NYSE:CAG), The Valspar Corporation (NYSE:VAL), Paychex (Nasdaq:PAYX) and Worthington Industries (NYSE:WOR).
5 Stocks Trading 15% Above Intrinsic Value
Neogen is expected to report earnings on Wednesday before the market opens. The stock is trading at approximately 109% of its 50 day moving average while finbox.io’s fair value data shows that shares are 35% overvalued. Wall Street’s consensus price target of $58.25 implies 11% downside.
Conagra is expected to report on Thursday before the market opens and nine separate valuation analyses imply the stock’s at least 25% overvalued. Shares are currently trading at 98% of their 52-week high.
In his first-quarter letter to investors of Greenlight Capital, David Einhorn lashed out at regulators. He claimed that the market is "fractured and possibly in the process of breaking completely." Q1 2021 hedge fund letters, conferences and more Einhorn claimed that many market participants and policymakers have effectively succeeded in "defunding the regulators." He pointed Read More
Valspar is expected to report on Tuesday before the market opens while ten cash flow models imply the stock’s stand-alone value is only $79 per share. The company’s trading at a premium due to it being in the process of getting acquired by The Sherwin-Williams Company (NYSE:SHW). However, there has recently been regulatory approval concerns which the two companies have publicly denied. Nevertheless, the stock could drop 15% if the rumors hold any truth.
Paychex is expected to report earnings on Wednesday before the market opens. Finbox.io fair value estimates imply that the stock is 20% overvalued while Wall Street’s consensus price target of $55 per share implies 9% downside.
Worthington is expected to report earnings on Thursday. Shares are trading at 121% of their 200 day moving average. Eleven analyses imply the stock is 17% overvalued while Wall Street’s consensus highlights 20% downside.
Value investors who are long any of these stocks may want to take a closer look at their fundamentals prior to earnings.