Research

AIG recovered sequentially in Q2, but EPS and pre-tax margin remained below last year. At $74.85, the shares already approximate a reasonable value for the current earnings run rate.

Growth products and Eliquis lifted revenue 5.7% and prompted a sharp guidance increase. The tension is weaker gross margin and continued dependence on a legacy blockbuster.

Operating earnings rose 16.3%, but insurance profits declined and currency helped the result. At $507, the shares sit near our $540 base-case value.

Revenue rose 14% and RoTCE reached 13%, strengthening the turnaround case. At $138.50, however, Citigroup already trades close to our $145 base value.

Charter produced higher EPS with fewer shares, not stronger operations. Broadband losses widened, EBITDA fell 4.3%, and leverage keeps the apparent valuation discount from being straightforward.

Free cash flow rose 2.3%, but residential connectivity EBITDA fell 8.0%. Wireless and Peacock improved without yet offsetting broadband pressure.

Capital One’s revenue, margin and EPS recovered sharply, helped by lower credit provisions. The print supports normalization, but integration costs and reserve volatility still cap fair value.

Capital One’s revenue and margins improved, but lower provisions supplied much of the earnings rebound. Fair value stays at $225 as integration costs and credit normalization limit the case for expansion.

Q2 revenue rose 36.9% and EPS more than doubled as pre-tax margin reached 31.7%. The print strengthens the earnings thesis, but $137 already discounts much of the rebound.

Aetna’s margin recovery lifted profit and full-year guidance. At $95.29, however, CVS already discounts much of the repair while medical costs and leverage keep the thesis conditional.

Chevron’s operations improved sharply, but high oil prices and timing benefits amplified the result. At $212.76, the shares already price in much of the durable progress.

Gilead produced $3.43B of quarterly free cash flow despite a $10.39B operating loss. The cash performance limits the damage, but $144.81 already discounts a recovery.

GM produced modest revenue growth, but operating margin, EPS and free cash flow all declined. At $86.12, the shares already sit close to our $90 base-case value.

GameStop’s sales contracted sharply, but operating margin tripled from a year ago and EPS rose 64.5%. The unresolved issue is whether those margins can survive continued revenue erosion.