The market sits about 7% above fair value, a touch pricier than last week

Short version: the market looks a little expensive right now. FPI pegs it at roughly 7% above fair value — not a red flag, just a bit rich. And it got richer this week, moving up from about 5% the week before. One thing to hold onto: FPI's reading is a long-term take on what companies are worth, not a knee-jerk to the past five days of headlines. So a wobbly week and a slightly pricier reading can absolutely happen at the same time.

The week itself was a bumpy one for the big names. US stocks fell, with the Nasdaq losing about 2%, the S&P 500 down under 1%, and the Dow slipping a bit too. The pain was concentrated in tech: Tesla dropped sharply after weak earnings, and Alphabet fell around 7% as its AI spending climbed. Money didn't just leave, though — it moved. Energy and commodities led the gains while tech and growth stocks took the brunt of the selling, as investors rotated into mid-caps, value, and commodities to start earnings season. Middle East jitters hung over things most of the week, then eased into Monday: stocks jumped early and oil dove more than 5% after the US and Iran paused attacks, with Treasury yields falling as inflation and rate worries cooled.

The priciest corner right now is basic materials — miners, chemicals, and the like — trading about a third above what FPI thinks they're worth. Right behind it sits technology, roughly 28% rich across the 205 tech names we track, and industrials at about 21% over. That top three is a lot of enthusiasm baked in. It fits the mood of the week, when Wall Street wobbled as investors got jittery about whether big tech's earnings could live up to sky-high hopes. Translation: you're paying a premium for these, so the results have to be near-perfect to justify it.

At the cheap end, financials stand out in a big way — banks and insurers are trading nearly 30% below FPI's fair value, the one sector screaming value on our screen. Utilities (about 5% under) and energy (about 2% under) are also leaning cheap, with energy under some price pressure this week. None of that is a nudge to buy — it's just where the bargains are showing up, and the kind of thing worth a spot on your watchlist so you can set a buy price in the app and wait. Quick geography note: European stocks (about 8.5% over fair value) are running a touch pricier than US ones (about 6.4% over), so the deals aren't concentrated on one side of the Atlantic.

SkyWest was the week's standout climber. The regional airline reported second-quarter profit of about $101 million, or $2.54 a share, down from a year earlier as higher fuel costs weighed on its prorate business, but the market cheered a bigger picture: the board approved another $250 million for buybacks, lifting remaining authorization to about $313 million, and management pointed to full-year earnings in the "$11 area." The stock gapped up, flipping SkyWest from deeply cheap to roughly 90% above what FPI thinks it's worth — the largest jump toward pricey of any stock this week.

American Airlines went the other way. It actually had a strong quarter on paper — record revenue of $16.7 billion, up about 16% and the highest in company history — but it cut its 2026 earnings guidance for the second time in three months as high fuel prices bit, now steering toward anywhere from a small loss to a small profit for the year. That reset knocked American from looking expensive to sitting about 45% below fair value in FPI's eyes. Workday and Workiva also slid hard versus their fair value this week. All told, 32 stocks dropped into undervalued territory — more than 10% below fair value — giving bargain hunters fresh names to add to a watchlist.

Busy week. Folks added 88 new buy prices, pushing us to 388 across 127 tickers. The attention went where you'd expect — Microsoft picked up the most new prices (4), with Apple, AMD, Amazon, and Chevron each adding a couple. Chevron's interesting because it's now on the board with just two investors watching, so it's early days there.

Three names crossed the 10-investor line this week, which unlocks their community buy zones in the app: AMD, Realty Income (O), and Tesla. On the pricing side, the biggest shift was Alphabet, where the community's typical buy price drifted down about 1% — a small nudge toward wanting a better entry. Microsoft and Netflix barely moved. Worth a peek at those unlocked zones in your watchlist.

Two things sit on the calendar for the week of August 3rd. First, the July jobs report lands Friday. Why care: a strong or weak hiring number nudges what investors expect from interest rates, and that ripples through what almost every stock is worth. Second, earnings season is still rolling — a fresh wave of companies report their spring results. Why care: earnings are the raw fuel for FPI's fair-value math, so every report can quietly reset what a stock is really worth in the app, updated daily. The Fed isn't meeting this week, so the spotlight stays on the data and the numbers coming straight from companies.

Nothing to do here but watch. If a name on your watchlist reports, check whether its fair value shifts once the results are in, and keep an eye on any sector where the reports are landing — that's often where fresh value shows up.