After observing what moves stocks for decades, I’ve come to a simple conclusion: stock prices move up when companies report better than expected results and raise their forecasts. Applying this rule leads to three stocks investors may consider when looking for stock to buy ahead of their next earnings reports.

Top Undervalued Stocks To Buy Now In September 2026

More specifically, I looked for three publicly-traded companies that have beaten consensus financial targets and raised guidance in more than one consecutive 2026 quarter, trade below sector or historical multiples to sales or earnings, and report their results this coming September or October.

Three companies, Micron Technology, Jabil and The Cigna Group, satisfy these criteria. Micron has the strongest competitive position of the three companies. More specifically, the company benefits from being a leading supplier of memory chips – a scarce resource in high demand due to high AI capital expenditures. However, since Micron’s shares have soared in 2026, the company must beat and raise above expectations for the stock to continue rising.

Jabil, which provides contract manufacturing services, is less exposed to the soaring demand resulting from AI capital expenditures. However, the company is expected to raise guidance after reporting its results in September. Meanwhile, Cigna could rise if investors back away from the AI trade and shift capital to so-called defensive stocks likely not to suffer from the bursting of the AI bubble.

Micron, Jabil, and Cigna Market Capitalization, Price/Earnings Ratio and Earnings Per Share

1. Micron Technology (MU)

MU Business Overview

  • Current share price (Aug. 18):$1,012
  • Sector / industry:Semiconductors; memory (DRAM, NAND, HBM)
  • Revenue growth (latest quarter):Revenue $41.46 billion, up 346%
  • Net Margin (latest quarter):55.9%
  • Free cash flow (latest quarter):$18.3 billion
  • Valuation (Aug. 18):Trailing P/E 22.83, forward P/E 7.04

Micron is the only major U.S.-based memory chipmaker and one of the "Big Three" DRAM/NAND producers alongside Samsung and SK Hynix. Micron’s products – particularly high bandwidth memory which are optimized to work with Nvidia AI chips – are in such demand that the company cannot supply all its customers – creating an opportunity to raise prices.

Why MU Stock Is A Top Choice

Micron is a top choice because of strong contracted demand; a pattern of beating targets and raising guidance; and a relatively low valuation.

  • There is a memory shortage and the company’s capacity is sold-out backed by contracted revenue.Management states HBM3E and HBM4 are fully booked through calendar 2027 with demand extending into 2028. Per- Micron's Fiscal Q3 2026 earnings-call prepared remarks, the company has signed 16 strategic customer agreements (SCAs) carrying roughly $100 billion in minimum contracted revenue. Micron is able to meet the demand of its key customers “only about 50% to about two thirds." of the time, CEO Sanjay Mehrotra told- Bloomberg.
  • A demonstrated pattern of beating its own guidance and raising the bar.- __Fiscal Q3 revenue__of $41.46 billion beat management's $33.5 billion guide by roughly 24%, and the company then guided fiscal Q4 to a record $50 billion with approximately 86% gross margin and approximately $31 EPS. Repeated large upside surprises make another beat plausible.
  • A valuation that remains low despite the run.A forward P/E near 6 and a PEG around 0.04 are extraordinarily low versus a semiconductor industry median forward P/E above 30, leaving room for multiple expansion if the super-cycle persists.

MU Key Risks

Its key risks are the long-term cyclicality of the memory business, the stock’s large increase so far in 2026 and rising capital costs that could pressure free cash flow.

  • Micron is in the cyclical memory chip business and pricing can reverse sharply. Coordinated capacity additions from Micron, SK Hynix and Samsung could eventually normalize prices. The extraordinarily low forward P/E partly reflects the market pricing in an eventual earnings peak.
  • The stock has already risen significantly this year, trading below its intraday high__of $1,255.00, so volatility is high – with a beta of__2.2.
  • Micron expects its capital expenditures to rise 67% so the company can build the capacity to meet high demand. If demand softens in this highly cyclical industry, capex could pressure free cash flow, according to Quartr____.

2. Jabil (JBL)

JBL Business Overview

  • Current share price (Aug. 18):$370
  • Sector / industry:Electronic manufacturing services; technology hardware
  • Revenue growth (most recent quarter):Revenue $8.75 billion, up 11.8%
  • Net margin (most recent quarter):2.6%
  • Free cash flow (most recent 12 months):$1.4 billion
  • Valuation (Aug. 18):Trailing P/E 46.23, forward P/E 23.41

Jabil provides engineering, supply-chain and manufacturing services. Its fastest-growing unit, Intelligent Infrastructure, builds AI data-center hardware. Jabil also serves automotive, healthcare and digital-commerce markets.

Why JBL Stock Is A Top Choice

Jabil is a top choice because it has a pattern of beating and raising and there is a catalyst to drive up the stock in September; revenue is speeding up due to AI capital expenditures and valuation is reasonable given the growth.

  • Jabil beat and raised full-year guidance in both fiscal Q2 and fiscal Q3 2026. It lifted its- __fiscal year 2026 revenue outlook__to $35 billion, core EPS to $12.70, and- __free cash flow__to greater than $1.4 billion. The company’s fiscal fourth quarter report — expected in late September — will happen at the same time as the company’s Annual Investor Briefing, where management is expected to issue formal fiscal year 2027 guidance. CEO Mike Dastoor has already signaled in the- __latest earnings conference__call AI-related growth in FY2027 of around 50% on a larger base.
  • Accelerating AI revenue.In the company’s- June earnings call, management raised expectations on AI-related revenue by $500 million from the company’s March outlook.
  • Reasonable valuation for the growth profile.At a forward P/E of 22.98 — below the hardware industry median of about- 30— with mid-teens revenue growth and rising margins, Jabil is inexpensive relative to AI-infrastructure peers, and analysts have repeatedly raised price targets (JPMorgan to $450 and Argus to $475), noted- CNN- .

JBL Key Risks

Key risks of JBL include the company’s high dependence on AI, its higher stock price that has limited potential upside and the thin margins in the manufacturing services industry.

  • Portfolio concentration:Intelligent Infrastructure may exceed 50% of revenue, increasing exposure to a potential AI-capex slowdown.
  • Much higher stock price:With the stock price having risen, some analysts consider the stock fully valued.
  • Thin margins in manufacturing services:A modest free-cash-flow margin limits the cushion if demand or pricing weakens.

3. The Cigna Group (CI)

CI Business Overview

  • Current share price (Aug. 18):$275
  • Sector / industry:Health care; health insurance and services
  • Revenue growth (most recent quarter):Revenue $71.7 billion, up 7%
  • Net margin (most recent quarter):2.3%
  • Free cash flow (latest 12 months):$9.11 billion up 131%
  • Valuation (Aug. 18):Trailing P/E 11.39, forward P/E 8.7

The Cigna Group provides health services through two business segments. Its Evernorth Health Services unit competes in the pharmacy benefit management, specialty pharmacy and care services segments. Cigna Healthcare provides medical insurance to U.S. and international customers.

Why CI Stock Is A Top Choice

Cigna stock is a top choice because the company consistently beats and rises; its valuation is deeply discounted compared to peers, and cash generation is growing.

  • Consistent beats and steadily rising guidance.Cigna beat- Q2 2026 adjusted EPS—$7.78 versus $7.59 consensus —and raised full-year adjusted EPS guidance to at least $30.45, continuing a pattern of upward revisions; management reiterated a 10% to 14% long-term EPS growth forecast, according to a- company release.
  • Deep valuation discount to peers and its own history.A forward P/E under 10 is roughly 27% below Cigna's own 10-year average and well below the managed-care and broader healthcare sector. This gap could close quickly if medical-cost fears ease and the 2027 pharmacy benefit management selling season proves lucrative, notes- Full Ratio.
  • Strong, growing cash generation and buybacks.The $7.7 billion free cash flow (up 27%) and roughly $9 billion full-year operating FCF guidance fund share repurchases, which support EPS growth and downside valuation, noted- SeekingAlpha.

CI Key Risks

The key risks for Cigna stock are negative recent analyst ratings and rising medical costs.

  • Negative near-term analyst momentum:- __Raymond James__downgraded CI to Outperform from Strong Buy on Aug. 3, and- __Jefferies__cut it to Hold from Buy on Aug. 4 (target to $307 from $336), citing that the EviCore sale could reduce Cigna’s adjusted operating income to about 10% below the analyst consensus estimate.
  • Medical-cost trend risk:- __PwC’s Behind the Numbers 2026 report__projects a group medical cost trend of roughly 8.5% to 9.0% for 2026 and Cigna management flagged that some Q2 benefits (specialty generics/biosimilars) will not repeat at the same level.

Micron Technology – a momentum stock – and Jabil – fitting the growth at a reasonable price model; are likely to benefit from strong AI capital expenditures. However, for defensive investors seeking to protect against a downturn in the AI trade, Cigna could be a good fit. Analyzing the stock market outlook for the last months of 2026 may also be important for investors to consider.