Nvidia shares pop as analysts dismiss AI bubble concerns
When InvestingPro’s Fair Value model identified Tactile Systems Technology (NASDAQ:TCMD) as significantly undervalued on April 28, 2025, few investors could have predicted the healthcare company’s impressive 68% return over the following seven months. This remarkable performance demonstrates how Fair Value analysis can help investors find attractive entry points, understand a stock’s intrinsic value, and make more informed investment decisions by combining multiple valuation methodologies. For investors looking to discover similar opportunities, the Most undervalued list features stocks our models currently identify as trading below their intrinsic value.
Tactile Systems Technology, a $555 million market cap healthcare company, specializes in medical devices for treating lymphedema and chronic wounds. When InvestingPro flagged TCMD as undervalued in late April, the company had reported $293 million in annual revenue and $27.5 million in EBITDA. The stock had experienced significant volatility in the preceding six months, with monthly returns ranging from +34.7% to -18.4%, creating uncertainty among investors. Despite this turbulence, InvestingPro’s comprehensive Fair Value analysis indicated the stock was trading 53.14% below its intrinsic value.
At the time of the undervalued signal, TCMD was trading at just $14.17. The stock initially dipped further, falling 30% in May following disappointing Q1 results. However, as InvestingPro’s analysis suggested, the market had overreacted to short-term challenges. TCMD began recovering in August with a 33.4% gain, followed by steady appreciation through October. The company’s fundamentals improved substantially during this period, with revenue increasing 6.3% to $311.5 million, EBITDA growing 8.3% to $29.8 million, and EPS rising 15.2% to $0.78. By November 9, 2025, the stock had reached $24.86, delivering a 68.45% return for investors who followed the Fair Value signal.
Recent developments have validated InvestingPro’s thesis. Tactile Systems beat analyst expectations in its Q3 2025 earnings report, triggering a positive stock reaction. BTIG subsequently upgraded the stock to "Buy," while Piper Sandler raised its price target from $14 to $20. The company’s participation in industry conferences and announcement of a new equity plan further strengthened investor confidence. Notably, InvestingPro’s current Fair Value estimate for TCMD is $27.61, suggesting an additional 11% upside potential from current levels.
InvestingPro’s Fair Value methodology leverages multiple valuation approaches to determine a stock’s intrinsic value. The model aggregates various factors including discounted cash flow analysis, comparable company valuations, and analyst consensus targets. This comprehensive approach helps identify mispriced securities before the broader market recognizes the opportunity. In TCMD’s case, the model accurately identified a significant value gap that eventually closed as the market reassessed the company’s prospects.
This success story illustrates the power of InvestingPro’s analytical tools for identifying market inefficiencies and generating substantial returns. With features like Fair Value analysis, financial health scores, and real-time alerts, InvestingPro equips investors with professional-grade tools to find similar opportunities across global markets. For investors seeking to uncover the next undervalued gem before the market catches on, Learn more about InvestingPro and gain access to these powerful investment insights today.