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More Reading from MarketBeat Media
3 Stocks Wall Street Likes More Than the Market Does
Authored by Nathan Reiff. Posted: 11/11/2026.
Key Points
- Cigna, Toll Brothers, and General Motors trade at relatively low valuations despite strong fundamentals and favorable analyst ratings, suggesting the market may be undervaluing them.
- Cigna raised its full-year adjusted earnings outlook and has cut its share count by a fifth over five years while trading at about 9x forward earnings.
- General Motors beat Q3 2026 revenue and earnings expectations, approved a new $20 billion buyback, and trades around 6x forward earnings despite tariff and EV headwinds.
- Special Report: The SpaceX Play Nobody Is Talking About
Favorable analyst ratings don't necessarily mean a company's share price will rise. Sometimes the market lags behind a bullish Wall Street assessment, leaving quality companies at relatively low earnings multiples even as they accumulate Buy ratings. The key is for investors to identify those companies before the broader market catches on.
Cigna Group (NYSE: CI), Toll Brothers Inc. (NYSE: TOL), and General Motors Co. (NYSE: GM) could all fit that description. These companies have notable strengths, including substantial free cash flow, disciplined share count management, and relatively low valuations. Each offers a unique but compelling case for why the broader investing public may be missing an opportunity to buy before prices rise.
Cigna Combines Low Valuation With Strong Buybacks and Improving Earnings
Health services giant Cigna reported nearly 6% year-over-year (YOY) revenue growth and beat expectations for both revenue and earnings in Q3 2026. But the biggest news from the company's latest earnings report may be its increase to the full-year adjusted earnings outlook: at least $30.60 per share, up from a floor of $30.45.
Evernorth, which includes the company's pharmacy benefit and specialty businesses, has continued to drive growth. However, it will likely face new pressures in the coming quarters because of industry-wide rebate shifts and an overall reduction in the number of employers offering coverage for GLP-1 drugs for weight loss.
Nonetheless, Cigna expects its ongoing businesses, including pharmacy benefits and broader specialty and care services, to generate at least 10% adjusted earnings per share (EPS) growth in 2027.
Cigna trades at a relatively modest 9x forward earnings, a sizable discount to the broader market. The company has capitalized on this valuation by reducing its share count by a fifth over the last five years, including approximately $500 million in repurchases during the first nine months of 2026. This has been made possible in part by the 2025 sale of its Medicare Advantage business.
An improving earnings outlook, strong buybacks, and a low valuation may point to an overlooked stock, but Wall Street rates CI shares a Moderate Buy overall. However, risks remain. In addition to pressures on its pharmacy benefit business, Cigna is preparing to roll out its Signature pharmacy pricing model to fully insured customers in 2027, while costs continue to rise.
Toll Brothers' Customer Base Is Resilient, Even If the Market Hasn't Noticed
Homebuilder stocks have faced a difficult macroeconomic environment, as affordability pressures and waning consumer sentiment have weighed on performance. However, Toll Brothers is in a unique position thanks to its luxury brand and customer base: its homes sold for an average of about $996,400 in Q3 2026, and its affluent buyers may have been better able to weather inflation in recent years.
The company's luxury move-up segment accounted for 61% of Toll Brothers' Q3 2026 home sales revenue, and a 25% cash-purchase rate helped give management the confidence to reaffirm its full-year fiscal 2026 outlook. Having $3.3 billion in liquidity and a net debt-to-capital ratio of 15.6% at the end of Q3 also helps.
That said, TOL shares still trade at around 11.5x forward earnings and a modest premium to book value. By comparison, rivals like NVR Inc. (NYSE: NVR) and Lennar Corp. (NYSE: LEN) both trade above 17x forward earnings. This may suggest that the market isn't giving Toll enough credit for its resilient customer base and that the stock remains undervalued relative to the industry.
The firm has also significantly reduced its share count, repurchasing hundreds of millions of dollars' worth of stock annually in recent years. This puts investors in a position to benefit if Toll's most natural upside catalyst comes to pass: a reduction in mortgage rates. Lower rates would expand the pool of potential buyers and help reduce the need for the company to offer incentives.
General Motors Faces Tariff, Inflation, and EV Headwinds, But Growth Is Strong
Despite its size and prominence, General Motors demonstrates a major disconnect between fundamentals and valuation. The company trades at around 6x forward earnings, a valuation that has helped prompt a share count reduction of about a third over the last four years. With significant liquidity, General Motors can also continue to offer a modest quarterly dividend.
On the earnings side, GM has performed well: it beat analyst revenue expectations for Q3 2026 by $1.2 billion and also came in a cent ahead of EPS estimates. The company boosted its full-year adjusted automotive free cash flow expectations while approving a new $20 billion share repurchase authorization.
The question for investors is whether GM's ability to grow earnings and cash while returning capital to investors makes the stock attractive despite the risks facing the industry. Inflation has hit automotive firms particularly hard, and electric vehicles are disrupting the company's longstanding business model. The company also continues to navigate challenges in China and from tariffs.
If GM can continue its buyback program and sustain its pricing in the truck and SUV market, it may be able to achieve analysts' forecast of more than 14% upside.
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