They don’t feel safe.
They don’t feel comfortable.

In fact, most of the time they feel wrong.

That’s because the market is a short-term voting machine. It reacts to headlines, sentiment, and narratives.

But over time?

It becomes a weighing machine.

It follows fundamentals.

And right now, I think there are a few companies where the fundamentals are improving…

While the stock price hasn’t caught up.

Let’s break down a few.

SoFi is still viewed by many as a lending business.

A cyclical, rate-sensitive company that benefited from a unique environment and now faces slowing growth.

There’s also lingering skepticism around whether SoFi can truly scale into a long-term, highly profitable platform.

The business has evolved significantly.

This is no longer just a “story stock.”

The market is still pricing SoFi like it’s the old version of itself.

A lender.

But the reality is different.

SoFi is building a full financial ecosystem:

More members → more products → more engagement → lower acquisition costs → higher lifetime value

That’s a flywheel.

And flywheels don’t show up immediately in stock prices.

If SoFi continues to execute, this will not be valued like a traditional financial company.

It will be valued like a platform.

And that’s where the upside comes from.

Zeta is still under the radar.

For most investors, it’s either:

There’s also skepticism around durability and competition in the data and marketing space.

Zeta is doing something most companies struggle to do:

It’s growing fast while improving cash flow.

That combination is rare.

Most companies trade based on one of two narratives:

Growth or profitability.

Zeta is transitioning into both.

And that transition phase is often where the biggest disconnects happen.

The market doesn’t fully trust it yet.

If Zeta continues to show:

Then the valuation will eventually adjust.

Because the market rewards companies that can scale efficiently.

Snap is still viewed as:

For many, the story is already “over.”

The business is improving.

This is not a dying platform.

It’s a platform evolving.

The market is still anchored to the old narrative.

But the business has changed.

Snap is no longer purely dependent on advertising.

It’s building multiple monetization layers:

At the same time, operating leverage is starting to show.

This is a higher-risk name.

But also one where:

If execution continues…

The upside could be significant.

Because sentiment is still extremely low.

Oscar is viewed as:

The healthcare insurance space is not exactly loved by the market.

Underneath the noise:

Yes, profitability has been inconsistent.

But the direction of the business still matters.

The market is focused on near-term issues.

Medical loss ratios.
Margins.
Short-term volatility.

But often, the biggest opportunities show up when:

The business is improving…

Before the financials fully reflect it.

If Oscar can:

Then the earnings power of the business could look very different in a few years.

And that’s the bet.

All of these companies share something in common:

The business is improving.

But the stock price is not fully reflecting it.

That’s where opportunity lives.

Because over time, fundamentals win.

Not immediately.

Not always cleanly.

But eventually.

The market catches up.

Surmount:

If you enjoy research like this, you should also check out Surmount.

It’s a platform where investors can build, test, and follow investment strategies powered by data and AI.

A really interesting tool for people who want to take their investing to the next level.

Disclaimer:
This content is for informational and educational purposes only and should not be considered financial advice. I am not a financial advisor. Always do your own research before making any investment decisions.