Market Overview

Three Overvalued Stocks With 15% Downside

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The following was originally published on Finbox

There are 119 companies expected to report earnings this coming week, and only a few are trading well above their intrinsic value. Finbox.io fair value data shows that three of these 119 companies have a negative 15% or more margin of safety: Heico Corp (NYSE: HEI), Nordson Corporation (NASDAQ: NDSN)and ABM Industries, Inc. (NYSE: ABM).

HEICO is expected to report earnings on Tuesday and nine valuation models conclude that shares are approximately 35% overvalued. This is below Wall Street's consensus price target of $73.50 which implies 10% downside. The stock is currently trading near its 52-week high.
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Nordson is expected to report on Tuesday while nine separate valuation analyses imply the stock’s approximately 25% overvalued. All nine models imply a fair value below the company's current share price which has doubled within the last year.
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ABM Industries is also expected to report earnings on Tuesday and appears to be trading at an 18% premium.
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Two Undervalued Stocks with 10% Upside

On the opposite end of the spectrum, there are only two companies expected to report earnings this week that have 10% or more upside.

VeriFone Systems Inc (NYSE: PAY) is trading at a 25% discount to fair value before earnings (expected Monday). Finbox.io's $20.42 fair value estimate is slightly above the Wall Street consensus price target of $19.88.

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Ten valuation analyses imply that Oracle Corporation (NYSE: ORCL) is approximately 10% undervalued prior to reporting earnings (expected Thursday). This figure is inline with Wall Street.

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Value investors may want to take a closer look at the stocks listed above prior to them reporting earnings.

Posted-In: finboxEarnings Long Ideas News Guidance Short Ideas Previews Trading Ideas

 

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