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.
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.
Oxford Industries is expected to report earnings on Tuesday. The company looks to be significantly undervalued on a projected free cash flow basis.
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.
Korn/Ferry International is expected to report earnings on Wednesday. The company appears to be significantly undervalued on a projected free cash flow basis.
Value investors may want to take a closer look at the stocks listed above prior to them reporting earnings.