There are 141 companies expected to report earnings this week (12/5 - 12/9) but only a few are trading well below their intrinsic value. Finbox.io fair value estimates show that only five of these 141 companies have 15% or more margin of safety: Vera Bradley (Nasdaq:VRA), Argan (NYSE:AGX), Oxford Industries (NYSE:OXM), Michaels Companies (Nasdaq:MIK) and Korn/Ferry International (NYSE:KFY).
Vera Bradley is expected to report earnings on Wednesday and ten valuation models conclude that shares are 20% undervalued. This may prove to be conservative as all six Wall Street price targets are above this estimate.
<img src='http://res.cloudinary.com/finbox/image/upload/v1480694554/1_-_VRA_bmgnyh.jpg' alt= ‘VRA finbox.io fair value estimate’>
Argan is expected to report on Thursday while ten separate valuation analyses imply the stock’s approximately 20% undervalued. The stock is trading near its 52-week high but still remains undervalued.
<img src='http://res.cloudinary.com/finbox/image/upload/v1480694552/2_-_AGX_vgtucv.jpg' alt= ‘AGX finbox.io fair value estimate’>
Oxford Industries is expected to report earnings on Tuesday. The company looks to be significantly undervalued on a projected free cash flow basis.
<img src='http://res.cloudinary.com/finbox/image/upload/v1480694554/3_-_OXM_bganba.jpg' alt= ‘OXM finbox.io fair value estimate’>
Michaels Companies is also expected to report earnings on Tuesday and ten valuation models imply shares are about 18% undervalued. However, note Wall Street's average price target implies shares are closer to 25% undervalued.
<img src='http://res.cloudinary.com/finbox/image/upload/v1480694553/4_-_MIK_ru7gpi.jpg' alt= ‘MIK finbox.io fair value estimate’>
Korn/Ferry International is expected to report earnings on Wednesday. The company appears to be significantly undervalued on a projected free cash flow basis.
<img src='http://res.cloudinary.com/finbox/image/upload/v1480694553/5_-_KFY_piq6cq.jpg' alt= ‘KFY finbox.io fair value estimate’>
Value investors may want to take a closer look at the stocks listed above prior to them reporting earnings.