02/16/2026 ValuEngine Weekly Market Summary & Commentary

2026, thus far, has been characterized by one-or-two day swings back and forth. Underneath it all, the global stock market continues to focus on underlying fundamentals and relative valuations, using positions in the Magnificent Seven as sources of funds.

Although earnings season is about two-thirds complete, there are still some major companies scheduled to report this week in addition to Walmart (WMT). Along with Walmart, rated 3 (Hold) by ValuEngine, three major e-tailers are scheduled to report. Only one, Carvana (CVNA), earns our top rating of 5 (Strong Buy). The other two, Etsy (ETSY) and Booking Holdings (BKNG), are rated 3 (Hold). Venerable manufacturer Deere Inc. (DE) is also rated 3.

Two other major companies receive favorable ratings: Newmont Corp. (NEM) is rated 5 and Analog Devices (ADI) is rated 4 (Buy). However, Newmont is considered 26% overvalued by our valuation model, while ADI is considered among the worst 10% of all companies we follow in valuation terms, at 73% overvalued. Although we expect ADI to outperform in the short term, in a market focused on value any misstep or perceived weakness is likely to result in a sharp decline.

Despite a high forward P/E of 42, our valuation model rates Carvana (CVNA) as 6% undervalued. This is partially due to an earnings growth rate of 60% with a price-to-earnings-growth ratio (PEG) of just 1.14. Be aware that CVNA is highly volatile with a beta of 3.45, signifying that statistically a 1% move in the broader market is often accompanied by a 3.5% move in CVNA, both upward and downward. Also, Carvana pays no dividend. In addition to income, the commitment to pay a dividend is seen by the markets as a sign of long-term stability.

In the most recent full analytic blog, published a few days ago and is still available on blog.ValuEngine.com, we made a list of twenty U.S.-listed companies along with 20 ADRs that are all rated 5 or 4 by our predictive model and are also rated undervalued by our valuation model. Most of them are also dividend payers with P/E ratios of 20 or less. Go to blog.valuengine.com and scroll down to see this article.

The three companies we especially want to highlight, particularly for conservative investors, are AES Corp. (AES), Garrett Motion (GTX), and Barclays PLC (BCS). In addition to all being rated 5 (strong buy), all are calculated as undervalued by our model, all pay dividends, and all have relatively low betas.

AES is one of the largest worldwide suppliers of clean electricity directly to major corporations. It has a generous yield along with a beta below 1.0 and potential for strong earnings growth. Garrett Motion (GTX) is a spin-off of U.S.-based Honeywell Inc. It specializes in advanced automotive boosting technologies, including passenger and commercial vehicle turbochargers, electric boosting systems, and hydrogen fuel cell compressors. It pays a dividend of 2.0% and also has a beta of less than 1.0.

Although its corporate headquarters have been moved to Switzerland and much of its production is done in China, Garrett Motion’s primary listing is on the NASDAQ. Barclays PLC is among the world’s largest global banking and financial services companies, founded in the UK in 1896. It has a dividend yield of 2.4% and a beta of less than 1.0. We believe these three stocks are stable enough to consider for potential additions or substitutions in most equity portfolios.