6 undervalued US shares that crushed earnings
Morningstar says US-listed earnings are set to rise 44.6% in Q2 vs Q1, with 55% of reported stocks beating FactSet by at least 5%. It screens for undervalued “earnings crushers” meeting criteria and names six: ALB, TEAM, BAX, KMX, IONS, SNY, each with reported EPS and revenue vs consensus and discounts to fair value.
How this was made
The 30-second read
Why it matters
For traders, the actionable element is limited because the piece is a curated list and mostly reiterates reported quarter results and Morningstar fair-value discounts. It can still inform watchlists for valuation re-rating, especially where the text notes outlook increases or prior post-earnings weakness.
Market read
A post-earnings valuation screen that may support selective accumulation, but it is not a fresh catalyst beyond the already-reported quarter results.
What to watch
The article does not quantify how much of the undervaluation is due to real risks (cyclicality, competitive pressure, trial/regulatory uncertainty) versus temporary sentiment.
Background
The article summarizes Q2 earnings outcomes for US-listed companies covered by Morningstar and then applies a valuation screen for stocks that beat earnings and revenue expectations while trading below fair value.
Ticker impact
Albemarle reported EPS of $3.75 vs $3.20 consensus and revenue of $1.74B vs $1.61B, while trading at a 36% discount to fair value.
Mild positive bias for valuation-sensitive positioning; near-term moves likely already reflect the earnings beat.
The text provides quantified beats and a maintained $200 fair value, but it does not introduce a new event beyond the reported quarter.
Atlassian beat EPS ($1.87 vs $1.50) and revenue ($1.77B vs $1.66B) with guidance described as crushed, and is flagged as 30% below fair value.
Moderately positive for investors who missed the earnings move; less likely to drive fresh upside without incremental new guidance details.
The article cites specific beat drivers and maintains a $220 fair value, but it is not a new guidance update in the text.
Baxter posted adjusted EPS of $0.56 vs $0.37 consensus and revenue of $2.96B vs $2.79B, with management increasing 2026 outlooks.
Potential continuation bid if the market had underpriced the outlook raise; otherwise limited incremental impact.
The article includes quantified results and mentions outlook increases, but does not provide the new numeric outlook figures.
CarMax delivered EPS of $1.31 vs $0.96 consensus and revenue of $8.01B vs $7.43B, yet the stock fell on June 17 amid CEO strategy uncertainty.
Two-sided near-term: valuation support may help, but the article implies the market is waiting for later strategy details.
The text provides the beat and the fair-value cut to $96, plus context for the earlier drop, but no new strategy specifics are disclosed.
Ionis reported Q2 revenue of $268.0M vs $189.1M consensus and maintained 2026 guidance around $890M, while shares are 39% below fair value.
Potential positive drift for long-duration biotech valuation, but likely gradual rather than explosive without new trial/regulatory catalysts.
The article includes concrete revenue and guidance figures and a valuation discount, but the key clinical catalyst referenced (ATTR-CM miss) is not newly disclosed here.
Sanofi reported Q2 EPS of $2.09 vs $1.90 consensus and revenue of $12.30B vs $11.31B, driven by Dupixent performance, and updated full-year guidance.
Moderately positive, especially if the updated guidance is meaningfully above prior expectations, though the article excerpt truncates the guidance details.
The text provides beat figures and mentions guidance update, but the excerpt ends before full guidance numbers are shown, limiting precision.
Market effects
Highlights pockets of valuation support across lithium, software, medtech, retail autos, and biotech, but does not provide a sector-wide new datapoint.
US-focused earnings season wrap and valuation screen, limited direct cross-region impact.
Sanofi’s results could matter for European pharma sentiment, but the article is primarily a US-listed stock screen.
Counterpoint
A screen-based “undervalued earnings crushers” list may overstate investability because it relies on Morningstar fair-value assumptions rather than new, tradable catalysts.
Key entities
- companyAlbemarle
Lithium producer flagged as an earnings and revenue beat with a 36% discount to Morningstar fair value.
- companyAtlassian
Software firm flagged as beating EPS and revenue with cloud acceleration and seat expansion drivers.
- companyBaxter International
Medtech company flagged as beating EPS and revenue and increasing 2026 outlooks.
- companyCarMax
Used-car retailer flagged as beating EPS and revenue but previously falling on strategy uncertainty.
- companyIonis Pharmaceuticals
Biotech flagged as strong revenue growth and maintained 2026 guidance, trading 39% below fair value.
