The Undervalued Screen ● uvs.code900.net Issue of 14 July 2026

Ten stocks the market has marked cheap

A ledger of names screening below fair value on the day’s analyst metrics — ordered from steadier large-caps down to higher-risk, higher-upside bets. Cheap is a verdict, not a fact.

Market context — Morningstar, week ended 10 Jul 2026

−5%
US market vs. fair value
35%
covered stocks undervalued
23%
covered stocks overvalued
Technology · Communication Services
most undervalued sectors

Morningstar's US Market Index sits at roughly a 5% discount to fair value on a market-cap-weighted basis, with tech and communication-services the most undervalued sectors, so pockets of value remain even as the broad index trades near record highs.

How these were screened

This isn’t a hand-picked list — it’s the output of quantitative value screens. A screen is a filter, not a recommendation. Names clear tests like these before appearing.

The value screen

Fair-value / fundamentals

  1. Lynch upside > 20% — fair value = EPS × 5-yr earnings growth (capped 5–25%), vs. price
  2. Price-to-book below 1.5
  3. P/E below both the industry and the company’s own 3-yr average
  4. Debt-to-equity below 0.5 — financial resilience
  5. 3-yr revenue growth > 20% — screens out merely declining businesses
  6. Positive analyst ratings — external validation

The large-cap screen

S&P 500 filter

  1. P/E under 20, vs. industry peers
  2. Price-to-book below 1.0
  3. Debt-to-equity under 100% — avoids leverage-driven cheapness
  4. Dividend sanity-check — a high yield can flag undervaluation or trouble ahead

The Ledger — 10 names

Model upside is the Lynch fair-value gap — theoretical, not a forecast. Read it inversely: the larger the figure, the more skepticism is already priced in. Large-caps are peer-relative calls without a Lynch figure.

1
Alphabet Inc. GOOGL

Mega-cap search/cloud/AI leader trading below large-tech peer multiples despite continued earnings strength.

~27-28x trailingP/E
peer-relativeno Lynch fig.
Lower risk
2
Cigna Group CI

Managed-care giant trades at a steep discount to industry peers even after raising its adjusted EPS outlook.

~9.4x fwdP/E
+30.6%model upside
Lower risk
3
Broadridge Financial Solutions BR

Dominant proxy-services and fintech-infrastructure provider that Morningstar rates as deeply undervalued despite a wide moat.

n/a (fair value $255)P/E
+47%model upside
Lower risk
4
Verizon Communications VZ

4-star-rated telecom offering a high yield as wireless competition eases into an oligopoly structure over time.

n/aP/E
+25%model upside
Moderate
5
Healthpeak Properties DOC

5-star medical-office/lab REIT trading far below fair value, though a dividend cut is not out of the question.

n/aP/E
+40%model upside
Moderate
6
Arch Capital Group ACGL

Bermuda-based insurer/reinsurer with strong 2025 results and a Lynch-style upside screen above 20%.

below peer avgP/E
+11.7% (consensus PT)model upside
Moderate
7
Trip.com Group TCOM

Chinese online-travel leader screening cheap on a Lynch fair-value basis but carrying China/ADR regulatory overhang.

below industry avgP/E
peer-relativeno Lynch fig.
Moderate
8
Equinox Gold Corp. EQX

Americas-focused gold producer merging with Orla Mining, trading at a deep discount to peers on a P/NAV basis.

~13.7xP/E
+72%model upside
Higher risk
9
Caledonia Mining Corp. CMCL

Zimbabwe-based gold miner with rising free cash flow amid $4,000+ gold prices, but single-country execution risk.

low single-digit fwdP/E
+72%model upside
Higher risk
10
Chicago Atlantic BDC LIEN

Cannabis-focused BDC with a 15.8% weighted loan yield and no non-accruals, but its double-digit dividend signals elevated risk.

~6.7xP/E
+276%model upside
Higher risk

Before you act — the cautions

This is information, not investment advice. “Undervalued” is an opinion produced by a screen, not a guarantee — a cheap-looking multiple often reflects real risks the market is already pricing in. Figures are approximate and current as of the issue date; verify live prices and do your own diligence before acting.

Sources — Morningstar: 33 Undervalued Stocks to Buy Before the Market Catches On · Morningstar: 10 Newly Overvalued Stocks this Week · Morningstar: The 10 Best Companies to Invest in Now · Forbes: 8 Best Undervalued Stocks To Buy Now for July 2026 · The Investing Engineer: Top 10 Undervalued Stocks to Buy in July 2026 · Morningstar: Q3 Stock Market Outlook · NerdWallet: The Most Undervalued Stocks in the S&P 500, July 2026