In partnership with
World Champ Tom Curren’s Next Move Will Change Surfing Forever
3X world surf champion Tom Curren just became a Surf Lakes ambassador and shareholder. The company’s patented wave tech is bringing surf to cities worldwide, with 2,000 ocean-quality rides per hour. Even actor Chris Hemsworth loves it. Invest in Surf Lakes by 10/30 at 11:59 PM PT.
This is a paid advertisement for Surf Lakes’ Regulation CF offering. Please read the offering circular at https://invest.surflakes.com
THE MONEY IDEA💡
4 Undervalued Plays Ahead of Earnings
Welcome, we are {{active_subscriber_count}} Money Masters and counting!
Earnings season has arrived and investors are preparing for volatility as markets react to tariffs, delayed data, and shifting rate expectations. Amid the uncertainty, several quality stocks still trade well below their true worth, creating an opportunity before results hit. This week we highlight four undervalued plays from Morningstar with strong fundamentals, clear catalysts, and the potential to outperform when earnings are released.
Let’s dive in.
Earnings is everything.
THE MONEY IDEA💡
4 Undervalued Plays Ahead of Earnings
Bottom Line: A healthcare REIT with improving occupancy trends and defensive tenant mix well-positioned for easing rate conditions.
Macro Tailwind: Lower long-term yields can lift property values by compressing cap rates across the portfolio.
Steady Cash Flow: Senior-housing and medical-office exposure provide stable rent streams insulated from consumer cycles.
Growth Optionality: New development projects and JV structures offer measured upside without balance-sheet strain.
Valuation Setup: Trading at a double-digit discount to NAV with a 2.8% yield, giving income investors a margin of safety.
Earnings Watch: Watch occupancy, lease spreads, and cost of capital for confirmation of a steady NAV rebuild.
Do This Next: Add a measured position for defensive income and potential appreciation as rates drift lower.
Bottom Line: A defensive compounder in transition, poised to recover after two weak quarters as margins stabilize and backlog visibility improves.
Core Strength: Market leadership in diagnostics, filtration, and bioprocessing anchors steady long-term demand.
Balance Sheet: Strong cash generation funds bolt-on deals and R&D while maintaining flexibility through the cycle.
Moat Mechanics: Switching costs and intangible assets support pricing power and resilient cash generation.
Valuation Setup: Shares trade roughly 25% below fair value, offering quality exposure at a discount.
Earnings Watch: Look for confirmation of steady margins, normalized inventory, and renewed guidance confidence.
Do This Next: Take a starter stake ahead of earnings and hold for multi-year life-science growth normalization.
Bottom Line: Recurring subscription growth and two straight beats set the stage for another potential upside surprise if margins hold.
Product Integration: AI is embedded to enhance Salesforce’s CRM suite, helping upsell existing customers.
Margin Discipline: Expense control and mix improvements support steady profitability even as macro headwinds persist.
Customer Retention: Strong switching costs and network effects across its ecosystem keep churn low and cross-selling high.
Valuation Setup: Trading at a 26% discount to fair value, providing ample upside once sentiment turns.
Earnings Watch: Monitor commentary on AI adoption rates, renewal pricing, and incremental margin progress.
Do This Next: Accumulate on weakness into earnings and scale on confirmation of continued beat-and-raise execution.
Bottom Line: The only large-cap AI leader still trading below fair value, with cloud momentum and durable cash flows ready to shine through the quarter.
Cloud Flywheel: Heavy early-year capex positions Azure for accelerated second-half growth as enterprise AI workloads scale.
Safe Haven: Strong balance sheet, recurring revenue, and global diversification make Microsoft a defensive anchor in volatile markets.
Moat Drivers: Deep switching costs and productivity lock-ins across Windows, Office, and Azure sustain long-term dominance.
Valuation Setup: Shares trade about 15% below fair value, offering a rare entry into an AI blue chip before a potential guidance raise.
Earnings Watch: Look for upbeat AI attach rates, higher Azure utilization, and margin commentary signaling expansion.
Do This Next: Build a core stake before earnings and add if guidance strengthens into Q4.
It’s been an honor.
ACTION PLAN✅
Let’s Make Money Today!
Quick Money: Balance cyclicality with defense using Invesco S&P 500 Equal Weight ETF $RSP ( â–² 0.51% ) for breadth and Health Care Select Sector SPDR $XLV ( â–² 0.67% ) for steady cash flows.
$VTR ( â–² 1.54% ): Add for yield and potential valuation lift as cap rates compress under easing monetary policy.
$DHR ( â–¼ 0.88% ): Start small ahead of results and hold for stabilization in diagnostics and life-science demand.
$CRM ( â–¼ 1.19% ): Accumulate into earnings for recurring strength and potential re-rating on positive guidance.
$MSFT ( â–² 0.39% ): Build a core position before the print and add on stronger Azure growth or AI margin expansion.
If you’re looking for more smart, actionable ideas beyond this week’s picks, we’ve gathered a short list of other high-quality newsletters worth your time.
See our curated picks here — practical insights on money, work, and life from trusted sources.
QUOTE CORNER📄
Quote of The Week
-Warren Buffett
Financial News Keeps You Poor. Here's Why.
The scandalous truth: Most market news is designed to inform you about what already happened, not help you profit from what's coming next.
When CNBC reports "Stock XYZ surges 287%"—you missed it.
What you actually need:
Tomorrow's IPO calendar (not yesterday's launches)
Crowdfunding deals opening this week (not closed rounds)
What real traders are positioning for (not TV talking heads)
Economic data that moves markets (before it's released)
The financial media industrial complex profits from keeping you one step behind.
Stocks & Income flips this backwards. We focus entirely on forward-looking intel that helps you get positioned before the crowd, not informed after the move.
Stop chasing trades that happened already.
Start prepping for the next one.
Stocks & Income is for informational purposes only and is not intended to be used as investment advice. Do your own research.
The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.