Chagee Holdings Ltd. (NASDAQ:CHA) has entered the top tier of undervalued stocks this week, flashing a potential signal for value investors even as the company faces significant headwinds.

Deep Value Signal Flashes Amidst Volatility

According to Benzinga Edge data, Chagee's value ranking surged week-on-week, jumping from 86.92 to 90.33.

This move places the Chinese beverage chain in the top 10th percentile of stocks based on intrinsic value, suggesting that the market's recent sell-off may have pushed the share price well below the company's fundamental worth.

While market sentiment remains mixed due to recent “caffeine” controversies, as per an AAStocks report, the widening gap between the stock’s price and its operational reality is catching the eye of value-focused investors.

What Does Benzinga’s Value Score Mean?

The value metric is a composite ranking that evaluates a stock's worth by comparing its market price to fundamental measures such as assets, earnings, sales, and operating performance.

However, Chagee's valuation bargain comes with visible risks. The stock's price trend remains deeply negative. Benzinga Edge’s Stock Rankings trend indicators show downward movement across all three timeframes: short (last couple of months), medium (last couple of quarters), and long (past year).

This confirms that the high value score is being driven by a falling share price rather than an uptick in momentum.

CHA Stock Underperforms

Shares of CHA have declined by 1.79% in 2026 so far. They were also lower by 50.37% over the last six months and just 62.73% over the past year.

On Friday, the stock closed 2.11% lower at $12.09 apiece.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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