- Wall Street is soaring, but tech megacaps are already becoming overvalued.
- Our criteria method finds high-quality undervalued stocks.
- Discover 8 high-quality US stocks with up to +62.3% upside potential.
Wall Street kicked off the week with strong gains as easing geopolitical tensions boosted investor sentiment. The climbed 1.49%, the advanced 1.41%, and the jumped more than 2% after Donald Trump called off a planned US strike on Iran and announced fresh talks with Tehran, sending oil prices down more than 5%.
Technology stocks led the advance. Amazon rallied 4.6%, pushing its market capitalization above $3 trillion for the first time, while Microsoft, Nvidia, Meta, Alphabet, and Tesla also posted strong gains.
The rebound follows a difficult July. The S&P 500 ended the month modestly lower, while the Nasdaq lost more than 3%, breaking a long streak of positive July performances. Even so, second-quarter earnings have remained broadly encouraging, with most S&P 500 companies reporting results above analysts’ expectations.
With sentiment improving and many large-cap technology stocks once again trading at demanding valuations, investors may want to look beyond the market’s biggest winners in search of companies that still offer attractive value.
Our 3-Criteria Approach: Combining Valuation and Financial Quality
To identify these opportunities, we have combined two complementary analytical approaches with Investing.com’s stock screener.
1. Valuation
We used InvestingPro Fair Value, which combines several widely recognized valuation models, to identify stocks trading below their estimated intrinsic value. We then cross-checked those results against analysts’ average price targets, retaining only companies where both measures pointed to meaningful upside.
2. Quality
We relied on the InvestingPro Financial Health Score, which evaluates companies across key metrics including growth, profitability, cash flow, valuation, and momentum. We complemented this with the Piotroski Score, a nine-point measure of financial strength based on profitability, leverage, and operating efficiency, helping identify companies with the strongest underlying fundamentals.
3. Investing.com stock screener
Finally, we turned to the Investing.com stock screener, searching for US stocks that meet the following criteria:
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Market capitalization greater than $1 billion
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Upside potential of more than 25% according to InvestingPro Fair Value
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Upside potential of more than 25% based on the average analyst price target
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Financial Health score greater than 3 out of 5
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Piotroski Score of 8 or 9 (out of 9)
This research identified 8 opportunities:
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Among these stocks are:
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, the world’s largest gold producer, combines a diversified portfolio of gold, copper, and silver assets with a strong balance sheet that includes $3.4 billion in net cash. Its perfect Piotroski Score of 9/9 and InvestingPro Financial Health Score of 3.84 rank it among the highest-quality names in the mining sector. In its latest quarterly results, the company beat earnings expectations with adjusted EPS of $2.10 and reaffirmed its 2026 free cash flow target of $8.5 billion, underscoring its ability to generate cash even in a volatile commodity environment.
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develops spinal implants, surgical robotics, and other musculoskeletal technologies, pairing steady growth with strong financial fundamentals. The company holds a Piotroski Score of 8/9 and an InvestingPro Financial Health Score of 3.71, reflecting solid profitability and balance sheet quality. In the first quarter, Globus reported EPS of $1.12, comfortably ahead of consensus, and raised its full-year 2026 earnings guidance above market expectations. With second-quarter results due on August 6, the stock has a near-term catalyst that could reinforce its positive momentum.
However, many other stocks on this list have more attractive profiles, particularly in terms of valuation based on models.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such, it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remain with the investor.
