DexCom earnings beat by $0.03, revenue topped estimates
When InvestingPro’s Fair Value models identified Opera Limited (NASDAQ:OPRA) as significantly undervalued in February 2024, the browser technology company’s stock was trading at $10.57. Fast forward 14 months, and the stock has delivered a remarkable 61.49% return, validating the power of data-driven valuation analysis. For investors seeking similar opportunities, InvestingPro’s Most undervalued list continues to identify potentially mispriced stocks using the same proven methodology.
Opera Limited, known for its innovative web browsers and AI-driven features, showed strong fundamentals even when initially flagged by InvestingPro’s models. At the time, the company reported annual revenue of $396.83 million and EBITDA of $69.19 million, with healthy earnings per share of $1.72. The stock had experienced mixed performance in the preceding months, suggesting market uncertainty about its true value.
InvestingPro’s Fair Value analysis indicated a significant upside potential of 46.93%, based on comprehensive valuation metrics and the company’s strong financial health score of 3.32. This analysis proved prescient as Opera’s fundamentals continued to strengthen, with revenue growing to $521.49 million and EBITDA reaching $103.12 million in the most recent reporting period.
The stock’s performance since the Fair Value signal has been impressive, with steady gains supported by positive developments. Multiple analyst firms, including TD Cowen and Goldman Sachs, have raised their price targets, with TD Cowen setting a $33 target. Opera has also expanded its AI features and integrated popular services like Discord and Slack into its browser, enhancing its competitive position.
InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, comparable company metrics, and market sentiment indicators. This comprehensive approach helps investors identify stocks trading significantly below their intrinsic value, as demonstrated by the Opera success story.
Recent quarterly results have continued to validate InvestingPro’s initial analysis, with Opera beating earnings expectations and maintaining strong growth momentum. The company’s focus on AI integration and product innovation has resonated with both users and investors, supporting the stock’s upward trajectory.
For investors looking to uncover similar opportunities, InvestingPro offers access to Fair Value analysis across thousands of stocks, along with real-time financial metrics, professional-grade research tools, and AI-powered insights. Opera’s success story demonstrates how combining comprehensive analysis with timely market intelligence can lead to significant investment returns.