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When InvestingPro’s Fair Value model identified iTeos Therapeutics (NASDAQ:ITOS) as significantly undervalued on March 31, 2025, the stock was trading at just $5.97. Today, barely three months later, the stock has delivered a remarkable 70% return, showcasing the power of data-driven valuation analysis. For investors seeking similar opportunities, InvestingPro’s Most undervalued list continues to identify potential value plays across the market.
iTeos Therapeutics, a clinical-stage biopharmaceutical company focused on developing innovative cancer immunotherapies, presented a compelling investment case despite facing operational challenges. At the time of the Fair Value signal, the company had reported $35 million in revenue with an EBITDA of -$155.57 million, while its stock had experienced six months of predominantly negative returns.
InvestingPro’s Fair Value analysis indicated a significant mispricing, estimating an upside potential of 55.44%. This analysis proved remarkably accurate as the stock quickly began to recover, particularly during April and May 2025, when it posted monthly gains of 21.44% and 38.21% respectively. The stock currently trades at $10.17, approaching the initial Fair Value target while maintaining additional upside potential.
Recent developments have validated the Fair Value thesis. Despite news of clinical trial setbacks and operational restructuring, the company’s Q1 financial results showed narrowing losses, beating analyst estimates. While several analysts adjusted their ratings, including JPMorgan’s downgrade to neutral with an $8 target, the stock’s performance has significantly exceeded these conservative projections.
InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, comparable company metrics, and market sentiment indicators. This comprehensive approach helped identify iTeos’s true value potential when market sentiment was at its lowest, demonstrating the importance of systematic valuation analysis in investment decision-making.
The success of this Fair Value call exemplifies the advantage of having access to sophisticated valuation tools and real-time market analysis. Learn more about InvestingPro to discover how you can identify similar opportunities before the market recognizes their true value potential. With new undervalued opportunities constantly emerging, InvestingPro’s Fair Value model continues to help investors make more informed investment decisions.