I was looking for names that are:
- lagging behind the overall market
- strongly undervalued
- still fundamentally strong
- and are sitting on perfect charts that are on the verge of breakouts
If capital is reallocated defensively, these stocks are positioned to do just that.š
$JD (-3,68%) - JD.com š
Business overview š§¬
One of China's largest e-commerce and logistics platforms with nationwide delivery service and strong presence in Chinese consumer behavior.
Basics š§¾
- Trading at approx. 46.9% below the estimated fair value
- Price-to-sales ratio ā 0.24 - heavily discounted
- Profit forecast: ~14.4% growth per year
- China is lagging behind the US - and JD is lagging behind China ā a major divergence is emerging.
Diagram š
- Wave 2 just completed
- Consolidation in a descending wedge
- Currently actively accumulating, with a safer entry point when the 50-day moving average turns to support.
- Target of wave 5 = ~124 % upside potential
Conclusion š”
This is what mispricing looks like.
Value is extremely high. The growth is real.
$US60855R1005 (-1,55%) - Molina Healthcare š„
Business overview š§¬
US provider of managed care programs for low-income families through Medicaid, Medicare and state marketplaces - a major beneficiary of ACA subsidies.
Basics š§¾
- ~77% below fair value
- Earnings growth ~9.6%/year
- Non-cyclical demand
- Revenue backed by government programs
- Michael Burry is long
Chart š
- ~68% below the all-time high
- Second wave support at 200-MMA
- Watching the second sub-wave near the 50-day line.
- Monthly RSI ~37
Conclusion š”
High value + demand supported by the Affordable Care Act (ACA).
Built to withstand changing pressures.
$PEP (+0,22%) - PepsiCo š„¤
Business overview š§¬
Global food and beverage giant with brands like Pepsi, Gatorade, Lay's and Doritos - staples that people buy regardless of the economy.
Basics š§¾
- Trading around 43.3% below estimated fair value
- Profits are expected to increase by around 11.1 % per year
- Around 23% below all-time high and lags the broader US market.
- Pays a dividend of approx. 4 %
Chart š
- In wave 1 within a primary wave 5
- Sub-wave 2 found support in the 200 DMA area.
- Position A ā is accumulated here, with a safer entry point on a trendline break.
- The short-term structure indicates an upside potential of approx. 60 % - definitely achievable this year.
Conclusion š”
Undervalued, defensive and paid to wait.
Exactly what I want for the late 2026-27 cycle.
Which undervalued, defensive stocks are you currently watching for the late cycle phase?
š Do you prefer value + cash flow or are you still waiting for lower entries?
š Looking forward to your takes.
