4 Stocks the Market Is Getting WRONG Right Now

The stock market is not perfectly efficient. In fact, right now, I think it's getting several stocks completely wrong, not slightly wrong, materially mispriced. And I'm saying that while the stock market sits at new record highs, and these aren't just random names. Each of these stocks are being mispriced for different reasons. It could be fear, neglect, skepticism, or just simply a misunderstanding. But why is that a good thing? Because for us long-term investors, that's where opportunity shows up. And as a CPA and an investor for over 15 years, finding opportunities like this is how wealth is built. Not following the crowd, not investing based off FOMO, doing the homework ahead of time. Look at a stock like Alphabet. If you've been watching my channel or part of my investing community, you know, I was pounding the table on this stock when it was sitting at a 17 times multiple. Everyone thought they were done. Not me. In fact, it's now my largest holding. Or look at Nvidia more recently. That stock fell down into the 160s. And what did I do? I kept pounding the table talking about how it was easily one of the easiest buys in the market right now. Both stocks are up huge. So today I'm going to present to you four more ideas. So let's start with the one the market just seemingly can't quite figure out and that's going to be Boeing stock ticker BA. And to clear up any confusion, this is a stock I like a lot moving forward. And I think there's a ton of upside. The historical narrative here though is brutal. safety issues, supply chain issues, production problems, constant negative headlines, and the market has basically said, "We don't trust this company right now." That's fair. But here's where I think the market is getting it wrong. This is still a duopoly with Airbus. Demand for the aircraft hasn't disappeared. Airlines still need planes, and companies have not lost confidence in Boeing. If anything, it has increased. And this is where both the market has been getting it wrong and where opportunity lies. Look at this chart here. You can see the company's backlog, which is all of the orders they have generated but not fulfilled yet. Think of backlog as money waiting to hit the topline revenue. Because in the accounting world, companies can announce orders until the cows come home. But they do not get credit for it until they deliver the final product to the customer. So, a growing backlog is a great problem. But now, let's turn to deliveries because after all, that's how money is truly earned. And for years leading into the pandemic, after multiple accidents, the FAA stepped in and capped the number of 737 Max planes that Boeing could deliver. In January 2024, it was capped at 38 per month. October of 25, it was increased to 42. And the target by the end of this year is going to be 53 planes that can be delivered of 737 max per month. That is huge upside potential that Boeing is not yet getting credit for. Look at this chart here. You can see how total aircraft deliveries have been increasing every year since the pandemic outside of 2024. So if you look back at the data in 2025, the company delivered 600 planes on the dot. Boeing is expected to deliver 650 to 680 aircraft this year alone. Roughly a 10% increase for an asset that cost airlines millions to purchase. As such, Boeing revenues are expected to grow roughly 8 to 10% this year and 15% next year. And I believe those estimates to be low. Earnings, on the other hand, are growing much faster and will finally flip to the positive again by the beginning of 2027, which will provide a huge tailwind as analysts are projecting nearly $8 per share in earnings by 2027. This is a company with a huge tailwind, and I had to throw that in there for Boeing. But in all seriousness, check it out. Not just from an earnings perspective, but how about a cash flow perspective? Looking here, you can see this is where I get really excited. Just two years ago, this company was burning 14 billion in cash. And now we're talking about within two two and a half years, we will see roughly 10 billion in positive free cash flow for Boeing. This all certainly is not priced into the stock. So the real question here isn't is Boeing perfect. It's are these problems permanent? If the answer is no, then the market is overdisounting the future. The market sees chaos. I see long-term demand, limited competition, and improving metrics. That disconnect is where the opportunity lies. But Nate, no mistake. This is an execution dependent stock. And before we move on to stock number two, let me take a moment to thank today's video sponsor, which is the Mly Fool. The Mly Fool has a ton of great resources and products available for investors of all different levels. And right now, if you go to fool.com/mark, you could check out their 10 best stocks to buy right now. All right, jumping back to the video, let's look at stock number two, which is going to be Lockheed Martin, stock ticker LMT. This one is being mispriced in a completely different way. It's not hated, it's ignored. And another stock that looks intriguing at current levels. We are in a world where the US is still technically at war with Iran. Geopolitical tensions are rising and defense budgets are increasing. And yet, this stock isn't getting much attention. Why? Because capital is flowing into AI, high growth tech, not into steady cash flow businesses like Loheed Martin. But here's the thing everyone is missing. During the war with Iran, the US has gone through huge amounts of missiles and products that all need to be stockpiled under an administration that likes to build a strong military. But here's the reality with the business. Loheed has long-term contracts, predictable revenue, and structural demand. Like we saw with Boeing, Loheed is the same in the fact that they get orders, but those orders do not turn into revenue until they deliver the final product. Here's a look at Loheed Martin's backlog, which I expect to surpass its recent record that was matched in 2025. What do these figures mean to you as an investor? Well, it gives you an idea of demand, but more importantly, the constant consistent cash flow. Some businesses start a new year hoping for sales. Loheed could stop taking new orders today, and they would have a backlog that would take roughly two and a half to three years to work through. Most of the company's production capacity through 2027 is almost entirely contracted out. Since the start of the US Iran war, shares of Loheed Martin have fallen over 20%. Why is this considering we're at war? Well, leading up to the war, you can see a surge in LMT shares and really across the defense sector in general. This is a classic buy the rumor, sell the news event. And investors took profits and put those monies to work in energy stocks initially and then back into technology as well, which leaves us long-term investors with another opportunity to buy a cash flowing business at a much more intriguing valuation. This is a boring but durable cash flow business with tons of demand. That's a different kind of opportunity. And that's going to lead us to stock number three, which is going to be Toast, stock ticker TO. And this is where skepticism comes in. Toast is building the operating system for restaurants payments ordering operations. And once restaurants adopt it, they tend to not leave it. That's powerful. But the market is focused on profitability concerns, macro pressures on the restaurant industry. So it discounts the growth story. Looking back, Boeing was the turnaround story, Lockheed was the cash flow story, and Toast is going to be our growth story. Big upside here, but also likely the most volatility. So note that beforehand. Here's where I think the market's getting it wrong here when it comes to Toast. If Toast continues to scale, this becomes a high margin reoccurring revenue platform. Toast shares are down roughly 20% over the past 12 months and trading at a much more compelling valuation, which I will show you here in a second. Often when company performance and stock price have a disconnect, that's when opportunities arise. So what is the problem right now? Well, investors are seeing strong revenue growth from the company, but the profits aren't growing all that much. They did recently reach profitability from an operating perspective, which is great, but analysts want to see more expansion. When Toast shows their ability to expand margins, you will see this stock soar. It's crazy because in the past it was a negative to be a software company with a hardware component. But today, in the world of AI, it's now the software only companies that are getting hit huge. And the software companies that have the hardware components, they're actually holding up better than expected. With Toast, the risk is higher, but the upside is as well. The demand is clear, evidenced by strong retention rates and ARR, which are growing above 100% for net retention and 28% year-over-year for ARR. From a valuation perspective, shares are expected to grow 28% on average over the next two years. And with shares trading at a forward PE of just 22 times, there is a clear disconnect between the price and growth with a PEG ratio firmly below one, which I love to see. Maybe due to the volatility, you don't want to buy toast right now, but you're really interested in it. Well, you don't have to buy it right now outright. Instead, maybe you could look at selling a cash secured put and utilizing an option strategy. Looking here, you can see a recent trade alert I sent out to my investing community on a put I sold on this very name at a $23 strike price, which generated me $70 in premium per contract. And in my case, I sold five contracts. And if you want to see trade alerts like this, then make sure you're part of my investing community, the Stock Investors Edge, where you get trade alerts, stock deep dives, option plays, market reports to give you an edge. And recently we just launched our brand new valuation website. All part of our community. Check out the link in the description below and join today. So to wrap up our discussion on toast again, this is a name with higher risk but long-term monetization potential. That gap is where the upside lives. And that brings us to stock number four, which is going to be Vistra, stock ticker VST. And this is going to bring us into the world of AI to a degree. When it comes to AI, everyone talks about the chip companies, Nvidia, AMD, Intel. But don't forget how much power these data centers need. This is where the next true bottleneck will fall. And I'm investing in it early. As investors, we don't make money chasing hype. We want to be there early, which means you have to be content going through the ups and downs and what I call the accumulation phase, which looking back, you will appreciate and wish you bought more shares. So with AI electricity demand up and supply not keeping up, that's where Vistra comes in. They own power generation, including nuclear assets, which puts them in a position to benefit from rising electricity demand. Shares of VST are up nearly 30% over the past 12 months. However, since peaking out in September of last year, shares have pulled back nearly 25%. And that's when I like to accumulate more shares. Sometimes stocks rise and don't look back. But with Vistra, we're getting another opportunity. Looking here, analysts are looking for 78% EPS growth this year and 31% growth next year, which comes to an average of around 50% per year. And right now, you can grab shares at just 19 times with that growth showing mispricing as the PEG ratio is well below one. I love buying stocks with PEG ratios below one if the story makes sense. And for Vistra, it certainly does. Vistra is unique in the fact that it is a utility company but its growth is more in line with a technology company a low PE fast growth is a great combination for investors and with Vistra we are looking at the infrastructure behind AI that's a mispricing driven by a misunderstanding so to conclude and step back look at the pattern Boeing turnaround story Loheed Martin a cash flow story toast is that growth and profitability story and Vistra is the AI infrastructure structure growth play. Different reasons, same result. If the market is not pricing these correctly, this is an opportunity for you. So, before we wrap all of this up, show your appreciation for the video. I would truly appreciate it if you just simply click that like button down below. Really helps the growth of the channel and spread it out to more eyes out there. And make sure you join our community, the Stock Investors Edge. There's also a link down in the description. Thanks for watching and we'll see you in the next one. Take care.