Reading earnings results is one of my main sources for generating new ideas. I look for companies that post great results. As an investor, it's my job to determine whether these results are sustainable and if the company is undervalued based on future earnings.
After reviewing this season’s Q1 filings, I started small positions in two names:
Stock A rose from the ashes and is now growing again. It's trading at an annualized EV/EBIT of 7x.
Stock B has probably the biggest tailwinds in its history. It still trades below liquidation value and under 3× EV/EBITDA.