The market’s obsession with momentum has left a trail of undervalued quality. This thread breaks down 10 names trading below their intrinsic value, backed by fresh 2025 data and real earnings power. No fluff. Just numbers, positioning, and edge.
UnitedHealth ($UNH) has been hammered this year, down nearly 40% YTD, dragged by DOJ probes and Medicare billing scrutiny. But the Optum segment is still growing at 15% annually. Q2 earnings drop July 29. Guidance was cut, but the payout ratio remains at 28% with $18B in free cash flow. Dividend yield sits at 2.9%. Analysts still peg a $415 target, implying 38% upside. Bear case hinges on regulatory fines and Medicare margin compression. Bull case is a classic fallen angel setup with long-term moat intact.
Salesforce ($CRM) is trading at $257, down 23% YTD. The company’s AI rollout (Agentforce) hasn’t hit full stride, but Q1 revenue still came in at $9.83B, up 8%. Operating margin hit 32.3% adjusted. Price hikes kick in August, with AI add-ons priced at $125 to $550 per user. Analysts hold a $348 target, with 32% upside. Bear case is margin pressure and acquisition bloat. Bull case is AI monetization and CRM dominance.
Evolution AB ($EVO) is a cash machine. Stock trades at 11.9x earnings, with a 4.1% dividend yield. Q1 revenue hit €520.9M, EBITDA dipped 1.1%, but player activity broke records. Market cap sits at €156B. CEO Martin Carlesund just bought more shares. Regulatory headwinds in Europe and cyberattacks in Asia are priced in. Bull case is U.S. expansion and buybacks. Bear case is regulatory drag and short interest.
Adobe ($ADBE) is sitting at $364, down from a $587 high. PE is 23.5. Q1 revenue was $5.18B, up 10%. Firefly AI is gaining traction. No dividend, but cash flow is strong. Analysts target $531 by year-end. Bear case is AI commoditization. Bull case is creative suite dominance and enterprise stickiness.
Amazon ($AMZN) is at $226. AWS grew 17% in Q1, now 63% of operating income. Advertising revenue up 18%. PE is 36.8. Analysts target $249 to $305. Bear case is consumer slowdown and regulatory noise. Bull case is AWS and ad margins driving profit growth.
American Express ($AXP) trades at $310, PE 21.7, dividend yield 1%. Q2 earnings expected July 19, with EPS forecast at $3.86. Book value per share is $44.84. Analysts raised targets to $371. Bear case is consumer credit risk. Bull case is younger demo growth and premium card spend.
Louis Vuitton ($LVMH) is at €477, PE 19, dividend yield 2.7%. Market cap €239B. Stock is off highs, but luxury demand in Asia is rebounding. Bear case is China volatility. Bull case is brand dominance and pricing power.
Copart ($CPRT) trades at $45.9, PE 31.1. Volume surged to 18.5M shares. 52-week low hit this week. No dividend. Bear case is used car pricing pressure. Bull case is salvage volume and global expansion.
Google ($GOOGL) is at $182, PE 20.2, dividend yield 0.46%. Q1 revenue was $80.5B, up 15%. Cloud and YouTube are growing. Analysts target $249. Bear case is antitrust. Bull case is AI integration and ad scale.
Fiserv ($FI) trades at $164, PE 29.1. Q1 revenue $4.88B, up 7%. No dividend. Analysts target $243. Bear case is fintech competition. Bull case is merchant services and embedded finance.
These aren’t speculative plays. They’re mispriced cash flow machines with real upside. The market’s chasing froth. These names are where the edge lives.
NOTE: This is not financial advice. Please conduct your own due diligence.