Endava (NYSE:DAVA) just announced it will deepen its relationship with TRD U.S.A., continuing as the motorsports company’s Official IT Consulting Partner and expanding into new circuits. This development comes at the same time as Endava’s recent quarterly results and fresh guidance, giving investors plenty to digest.

Endava’s new TRD U.S.A. partnership and recent earnings update landed just as the company’s shares slipped to $6.95, reflecting a year-to-date share price decline of 77.21%. While the expanded motorsports exposure hints at future growth, momentum remains challenged as the one-year total shareholder return stands at -76.44% and the three-year total at -91.36%. Investors appear cautious, weighing promising partnerships against recent operational headwinds.

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Despite steep losses over the past year, Endava now trades significantly below analyst targets. Is this a long-term buying opportunity, or is the market simply reflecting persistent operational risks and muted future growth?

Most Popular Narrative: 59.3% Undervalued

Endava’s most popular narrative values the company at $17.08 per share, far above the last close of $6.95. This mismatch highlights a dramatic disconnect and a potential opportunity that investors are watching closely.

Endava’s focus on AI-enabled capabilities, such as Morpheus and Compass, positions it to leverage the digital shift. This could expand its addressable market and drive future revenue growth through AI-driven services. The company’s strategy of securing larger and longer-term deals, particularly in core modernization projects, is expected to contribute to meaningful revenue growth and stability in earnings, despite longer sales cycles.

Read the complete narrative.

Want to know what’s fueling this outsized valuation gap? Hint: The narrative hinges on bold projections about long-term profit improvement and the power of cutting-edge tech partnerships. Which financial forecast is most crucial to this story? Find out what’s behind the numbers and see why analyst consensus draws a sharp line between current prices and potential upside.

Result: Fair Value of $17.08 (UNDERVALUED)

However, slow sales cycles for AI projects and ongoing economic uncertainty in key markets could limit Endava’s expected revenue growth and margin improvement.

Build Your Own Endava Narrative

If you see things differently or want to dig deeper into the numbers yourself, crafting your own perspective takes just a couple of minutes. Do it your way

A great starting point for your Endava research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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United Parcel Service, Inc.’s (NYSE:UPS) stock was strong despite it releasing a soft earnings report last week. However, we think the company is showing some signs that things are more promising than they seem.

How Do Unusual Items Influence Profit?

To properly understand United Parcel Service’s profit results, we need to consider the US$837m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that’s hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don’t come up again, we’d therefore expect United Parcel Service to produce a higher profit next year, all else being equal.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On United Parcel Service’s Profit Performance

Because unusual items detracted from United Parcel Service’s earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that United Parcel Service’s statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company’s potential, but there is plenty more to consider. So while earnings quality is important, it’s equally important to consider the risks facing United Parcel Service at this point in time. For instance, we’ve identified 2 warning signs for United Parcel Service (1 is concerning) you should be familiar with.

Today we’ve zoomed in on a single data point to better understand the nature of United Parcel Service’s profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to ‘follow the money’ and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

International Business Machines Corp. (NYSE:IBM) announced a series of quantum computing milestones at its annual Quantum Developer Conference, underscoring progress toward achieving quantum advantage by 2026 and fault-tolerant quantum computing by 2029.

IBM Quantum Nighthawk Targets Next-Level Complexity

At the center of IBM’s announcement is the IBM Quantum Nighthawk, a next-generation 120-qubit processor featuring 218 tunable couplers—20% more than its predecessor, the IBM Quantum Heron. The enhanced connectivity allows users to execute circuits with 30% greater complexity while maintaining low error rates.

The first Nighthawk units are expected to reach users by late 2025, capable of handling circuits with up to 5,000 two-qubit gates. IBM projects that capacity will rise to 7,500 gates by 2026, 10,000 by 2027, and 15,000 by 2028 through long-range coupler integration.

Jay Gambetta, Director of IBM Research and IBM Fellow, said, “There are many pillars to bringing truly useful quantum computing to the world. We believe that IBM is the only company positioned to rapidly invent and scale quantum software, hardware, fabrication, and error correction to unlock transformative applications.”

Community-Led Tracker to Validate Quantum Advantage

IBM and its partners—Algorithmiq, the Flatiron Institute, and BlueQubit—are contributing experiments to a new open-source quantum advantage tracker. The initiative aims to benchmark quantum systems against the best classical simulation methods across problems like observable estimation and variational models.

Sabrina Maniscalco, CEO and co-founder of Algorithmiq, said, “The model we designed explores regimes so complex that it challenges all state-of-the-art classical methods tested so far. Quantum advantage will take time to verify, and the tracker will let everyone follow that journey.”

Hayk Tepanyan, CTO and co-founder of BlueQubit, added, “We are excited to help formalize instances where quantum computers are starting to outperform classical computers by orders of magnitude.”

Qiskit Enhancements Boost Accuracy and Efficiency

IBM also introduced significant upgrades to Qiskit, its open-source quantum software stack. The platform now supports dynamic circuit execution that improves accuracy by 24% on 100+ qubit systems and incorporates HPC-powered error mitigation that reduces the cost of obtaining precise results by over 100 times.

Through a new C++ interface and C-API, Qiskit integrates more seamlessly with high-performance computing environments. By 2027, IBM plans to expand Qiskit with computational libraries for machine learning and optimization applications, advancing research in fields such as chemistry and physics.

IBM Quantum Loon and Fault-Tolerance Progress

The company also unveiled IBM Quantum Loon, an experimental processor demonstrating all key hardware elements needed for fault-tolerant quantum computing. IBM achieved a tenfold decoding speedup in quantum error correction—completed one year ahead of schedule—using qLDPC codes that identify and correct quantum errors in under 480 nanoseconds.

Scaling Quantum Fabrication to 300mm Wafers

To accelerate development, IBM has transitioned quantum processor fabrication to 300mm wafer facilities at the Albany NanoTech Complex in New York. This shift has doubled R&D speed, enabled parallel testing of multiple chip designs, and increased the physical complexity of its quantum processors by tenfold.

These developments mark IBM’s latest step toward making large-scale quantum computing commercially viable, reinforcing its leadership in the race toward a fault-tolerant quantum future.

KE Holdings (NYSE:BEKE) shares edged up 2% today with no headline news, leaving many investors scanning for underlying drivers. Some are looking to the past month’s performance for further context.

Pfizer Inc. (NYSE:PFE) just reported healthy earnings but the stock price didn’t move much. Our analysis suggests that investors might be missing some promising details.

How Do Unusual Items Influence Profit?

To properly understand Pfizer’s profit results, we need to consider the US$7.0b expense attributed to unusual items. It’s never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that’s hardly a surprise given these line items are considered unusual. If Pfizer doesn’t see those unusual expenses repeat, then all else being equal we’d expect its profit to increase over the coming year.

That might leave you wondering what analysts are forecasting in terms of future profitability.

Our Take On Pfizer’s Profit Performance

Because unusual items detracted from Pfizer’s earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Pfizer’s statutory profit actually understates its earnings potential! Furthermore, it has done a great job growing EPS over the last year. At the end of the day, it’s essential to consider more than just the factors above, if you want to understand the company properly. So if you’d like to dive deeper into this stock, it’s crucial to consider any risks it’s facing. For instance, we’ve identified 3 warning signs for Pfizer (1 can’t be ignored) you should be familiar with.

This note has only looked at a single factor that sheds light on the nature of Pfizer’s profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

Yum China Holdings (NYSE:YUMC) just released its third-quarter 2025 results, highlighting higher operating profit, steady same-store sales growth, and a notable boost in new store openings. Analysts responded positively after the announcement.

Backed by robust Q3 results, a share buyback, and another dividend, Yum China’s stock showed modest momentum lately, climbing 5.0% over the past month. That said, the one-year total shareholder return is still down 7.3%, reflecting lingering caution as growth initiatives ramp up. Investors are watching whether margin improvements and fast store expansion can reignite long-term performance.

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With analyst price targets suggesting considerable upside from current levels and Yum China’s fundamentals showing resilience, the question remains: Is this a market mispricing that offers investors real value, or has future growth been fully factored in?

Most Popular Narrative: 22.8% Undervalued

Yum China’s narrative fair value significantly exceeds the last close at $44.79, signaling a wide gap between price and expected upside. This setup reflects deep confidence in structural growth drivers, not just cyclical momentum.

Continued aggressive expansion into lower-tier Chinese cities and new store formats (including KCOFFEE Cafes and Pizza Hut WOW), combined with healthy new store payback periods, supports ongoing top-line revenue growth and market share gains by tapping into rising urbanization and a broadening middle class.

What is fueling this bullish price target? It centers on a transformation on the ground, with both menu reinvention and a digital overhaul elevating engagement and profitability. Find out which forecasted financial leap is set to power the next leg of growth and why it is considered the secret behind this notable valuation.

Result: Fair Value of $57.99 (UNDERVALUED)

However, intensifying competition and a shift toward lower ticket orders could challenge Yum China’s ability to sustain strong margins and long-term earnings growth.

Build Your Own Yum China Holdings Narrative

If you have a different perspective on Yum China’s story or simply want to dig into the numbers yourself, you can build your own view in just minutes. Do it your way

A great starting point for your Yum China Holdings research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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Vehicle systems manufacturer Commercial Vehicle Group (NASDAQ:CVGI) fell short of the markets revenue expectations in Q3 CY2025, with sales falling 11.2% year on year to $152.5 million. The company’s full-year revenue guidance of $645 million at the midpoint came in 1.6% below analysts’ estimates. Its non-GAAP loss of $0.14 per share was 16.7% below analysts’ consensus estimates.

This quarter, Commercial Vehicle Group missed Wall Street’s estimates and reported a rather uninspiring 11.2% year-on-year revenue decline, generating $152.5 million of revenue.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection suggests its newer products and services will catalyze better top-line performance, it is still below the sector average.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

Operating Margin

Commercial Vehicle Group was profitable over the last five years but held back by its large cost base. Its average operating margin of 2.9% was weak for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.

Looking at the trend in its profitability, Commercial Vehicle Group’s operating margin decreased by 5.3 percentage points over the last five years. Commercial Vehicle Group’s performance was poor no matter how you look at it – it shows that costs were rising and it couldn’t pass them onto its customers.

In Q3, Commercial Vehicle Group’s breakeven margin was down 2.4 percentage points year on year. Since Commercial Vehicle Group’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Commercial Vehicle Group’s earnings losses deepened over the last five years as its EPS dropped 29.3% annually. We tend to steer our readers away from companies with falling EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, Commercial Vehicle Group’s low margin of safety could leave its stock price susceptible to large downswings.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

Sadly for Commercial Vehicle Group, its EPS declined by more than its revenue over the last two years, dropping 59.2%. This tells us the company struggled to adjust to shrinking demand.

We can take a deeper look into Commercial Vehicle Group’s earnings to better understand the drivers of its performance. Commercial Vehicle Group’s operating margin has declined over the last two yearswhile its share count has grown 1.6%. This means the company not only became less efficient with its operating expenses but also diluted its shareholders.

In Q3, Commercial Vehicle Group reported adjusted EPS of negative $0.14, down from negative $0.01 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects Commercial Vehicle Group to improve its earnings losses. Analysts forecast its full-year EPS of negative $0.46 will advance to negative $0.10.

Key Takeaways from Commercial Vehicle Group’s Q3 Results

We struggled to find many positives in these results. Its full-year EBITDA guidance missed and its revenue fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 7.2% to $1.41 immediately after reporting.

Commercial Vehicle Group may have had a tough quarter, but does that actually create an opportunity to invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.

Beyond Meat (BYND) shares closed down slightly ahead of the plant-based meat company’s delayed third-quarter earnings scheduled for Nov. 10 (after the bell).

The Nasdaq-listed firm is expected to record roughly $69 million in revenue for its fiscal Q3, down some 15% on a year-over-year basis, with $0.43 a share of quarterly loss.

At the time of writing, BYND stock is trading more than 80% below its high in late October.

Telecom software provider Amdocs (NASDAQ:DOX) will be announcing earnings results this Tuesday after market close. Here’s what to look for.

Amdocs beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.14 billion, down 8.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ full-year EPS guidance estimates and a narrow beat of analysts’ revenue estimates.

Is Amdocs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Amdocs’s revenue to decline 9.5% year on year to $1.14 billion, a reversal from the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.82 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Amdocs has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Amdocs’s peers in the it services & other tech segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 84.3%, beating analysts’ expectations by 17.6%, and IonQ reported revenues up 222%, topping estimates by 47.8%. Applied Digital traded up 16.1% following the results while IonQ was also up 3.7%.

Investors in the it services & other tech segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Amdocs is up 3.8% during the same time and is heading into earnings with an average analyst price target of $104.00 (compared to the current share price of $84.55).

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Plant-based protein company Beyond Meat (NASDAQ:BYND) will be announcing earnings results tomorrow after the bell. Here’s what to expect.

Beyond Meat missed analysts’ revenue expectations by 8.6% last quarter, reporting revenues of $74.96 million, down 19.6% year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Is Beyond Meat a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Beyond Meat’s revenue to decline 15.1% year on year to $68.77 million, a reversal from the 7.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.43 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Beyond Meat has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Beyond Meat’s peers in the perishable food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vital Farms delivered year-on-year revenue growth of 37.2%, beating analysts’ expectations by 3.7%, and Pilgrim’s Pride reported revenues up 3.8%, topping estimates by 0.8%. Vital Farms traded up 11% following the results while Pilgrim’s Pride’s stock price was unchanged.

Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the perishable food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.6% on average over the last month. Beyond Meat is up 25.6% during the same time and is heading into earnings with an average analyst price target of $2.23 (compared to the current share price of $1.30).

The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom.