6 Undervalued Stocks That Crushed Earnings
Morningstar says 55% of US-listed stocks it covers beat FactSet earnings by at least 5% as of Aug. 11. It screened for six undervalued “earnings crushers” with 10%+ EPS beats and 5%+ revenue beats, including Albemarle, Atlassian, Baxter International, CarMax, Ionis Pharmaceuticals, and Sanofi, citing EPS, revenue, Morningstar ratings, and discounts to fair value.
How this was made
The 30-second read
Why it matters
The article is primarily a valuation-and-quality screen after Q2 earnings, with some mentions of outlook changes (e.g., Baxter) and fair value maintenance/adjustments. It does not present a new, discrete catalyst for most names beyond the reported results.
Market read
Traders can use the list to identify undervalued post-earnings winners, but the piece is not a fresh catalyst feed and is unlikely to drive large incremental repricing by itself.
What to watch
For some names (notably CarMax and Ionis), the market reaction and prior clinical overhangs may dominate near-term price action more than the beat itself.
Background
Morningstar screens Morningstar-covered US-listed stocks that beat earnings and revenue expectations by specified thresholds and remain undervalued versus fair value.
Ticker impact
Albemarle beat EPS and revenue consensus, with higher lithium prices driving more than 150% profit growth, while the article reiterates a $200 fair value.
Mild positive bias for near-term sentiment; limited incremental catalyst beyond the reported beat.
The article provides quantified EPS/revenue beats and a stated fair value maintenance, but it does not disclose a new guidance revision or fresh event beyond the earnings results.
Atlassian reported EPS and revenue above consensus and “crushed guidance,” with revenue up 28% YoY and non-GAAP operating margin at 36%.
Potentially positive follow-through if investors focus on quality of the beat (cloud acceleration, seat expansion, cross-selling).
The article includes specific beat metrics and qualitative drivers, but it is still an analyst-screen writeup rather than a new post-earnings revision.
Baxter beat EPS and revenue consensus and increased its 2026 outlooks, while the article maintains a $40 fair value after incorporating near-term expectation adjustments.
Moderately positive for the next few sessions as traders digest the outlook raise.
The text explicitly states management increased top- and bottom-line outlooks for 2026, which is a concrete incremental item, but it lacks new numbers beyond the beat and fair value maintenance.
CarMax delivered EPS and revenue above consensus, but the stock fell over 9% on June 17; the article attributes the drop to CEO Keith Barr’s new strategy pillars.
Near-term direction depends on whether investors get clarity on the late-fall strategy pillars; immediate impact likely muted.
The article discusses a prior reaction (June 17) and fair value change driven by WACC, not a new same-day catalyst.
Ionis posted higher-than-consensus revenue and maintained 2026 guidance around $890 million, despite EPS missing consensus, and the article cites a post-ATTR-CM trial miss pullback as an entry point.
Limited upside unless investors re-focus on commercial scaling and guidance durability.
The article provides specific revenue and guidance figures and links valuation to the prior trial miss, but it does not introduce new trial outcomes or regulatory updates.
Sanofi is listed among the screen winners with EPS and revenue above consensus and a 30% discount to fair value, but the provided excerpt cuts off before details.
No reliable near-term trading call from this excerpt alone.
The body segment for Sanofi is truncated, so the article does not disclose the specific drivers, guidance changes, or analyst actions in the text provided.
Market effects
Cross-sector read-through that earnings beats are increasingly paired with valuation discounts, but no single sector policy or regulatory change is disclosed.
US-listed companies in the Morningstar US Market Index are the focus; no cross-region macro shock is described.
Limited, since the article is a US-focused screen and does not introduce global geopolitical or supply-chain disruptions.
Counterpoint
A “crushed earnings” screen can overweight temporary factors; without new guidance revisions or valuation model changes, the trade may fade after initial post-earnings positioning.
Key entities
- companyAlbemarle
Lithium producer highlighted for strong Q2 profit growth tied to higher lithium prices and a maintained $200 fair value.
- companyAtlassian
Software company highlighted for EPS and revenue beats, guidance outperformance, and buyback acceleration narrative.
- companyBaxter International
Healthcare company highlighted for EPS/revenue beats and increased 2026 outlooks, with $40 fair value maintained.
- companyCarMax
Retail auto company highlighted for EPS/revenue beats but a prior stock drop attributed to new CEO strategy pillars.
- companyIonis Pharmaceuticals
Biotech highlighted for strong revenue growth and maintained 2026 guidance, framed as an entry point after an ATTR-CM trial miss.
