Amid strong second-quarter earnings, US-listed companies are exceeding estimates, with earnings set to grow 12.8% from Q1 2025. Over half of Morningstar-covered stocks beat FactSet estimates by 5% or more, offering undervalued opportunities for investors. A screen identified 10 undervalued stocks with impressive earnings and revenue beats.

88% of US-listed firms covered by Morningstar have reported Q2 earnings, with 52% beating estimates by 5% or more. Analysts focus on long-term results and valuations, looking for opportunities where earnings outperform expectations. A stock screen identified 10 companies that beat earnings by 30% or more and remain undervalued, with strong revenue beats and economic moats.

Fortrea reported revenue growth of $710 million, raising 2025 guidance. Despite challenges, the company remains optimistic, though fair value estimate was lowered due to near-term risks. Biogen and Pfizer also reported strong earnings, with revenue growth and raised guidance, keeping shares undervalued. Lamb Weston and BioMarin show positive growth and undervaluation, with optimistic outlooks.

Bristol-Myers Squibb’s revenue grew 1%, with lower EPS due to licensing deals. Despite challenges, shares are maintained at fair value. Regeneron saw revenue growth, driven by Dupixent sales, maintaining fair value. DraftKings reported revenue growth and profitability, with strong demand and reinvestment in the business. Polaris reported sales decline but outperformed the market, with an unchanged fair value estimate. Bio-Rad Laboratories exceeded expectations with revenue growth, maintaining undervaluation.

Read more at Morningstar: 10 Undervalued US Stocks That Crushed Q2 Earnings