eyeQ: Burberry, M&G, Shell, Thermo Fisher Scientific

“Our signals are crafted through macro-valuation, trend analysis, and meticulous back-testing. This combination ensures a comprehensive evaluation of an asset's value, market conditions, and historical performance.” eyeQ

• Discover: eyeQ analysis explained | eyeQ: our smart machine in action | Glossary

This series of weekly articles uses eyeQ’s smart machine to highlight 10 stocks whose share price trades at either a discount or premium to eyeQ’s Model Value price (where macro conditions say the share 'should’ trade).

A minus figure in these tables indicates a share trading below eyeQ’s Model Value, implying they are ‘cheap’ versus macro conditions. A plus figure screens as rich because the current share price is above eyeQ’s Model Value.

All companies must have a model relevance above 65%, which means the macro environment is critical and any valuation signals carry strong weight.

Here are definitions of terms used in the analysis:

Model value

Where our smart machine calculates that any stock market index, single stock or exchange-traded fund (ETF) should be priced (the fair value) given the overall macroeconomic environment.

Model relevance

How confident we are in the model value. The higher the number the better! Above 65% means the macro environment is critical, so any valuation signals carry strong weight. Below 65%, we deem that something other than macro is driving the price.

Fair Value Gap (FVG)

The difference between our model value (fair value) and where the price currently is. A positive Fair Value Gap means the security is above the model value, which we refer to as “rich”. A negative FVG means that it's cheap. The bigger the FVG, the bigger the dislocation and therefore a better entry level for trades.

Long Term model

This model looks at share prices over the last 12 months, captures the company’s relationship with growth, inflation, currency shifts, central bank policy etc and calculates our key results - model value, model relevance, Fair Value Gap.

UK Top 10

Source: eyeQ. Long Term strategic models. Data correct as at 31 July 2026.

Burberry

Burberry Group (LSE:BRBY) sits 10.5% above eyeQ model value of 1,088.39p - that’s 9.4% rich, the biggest fair value gap in this week’s UK list and the biggest fair value gap in a year. The surge in the share price is a result of stronger trading results, building confidence that the company is finally managing to turn a corner after years of poor performance. But also, big institutions are circling the stock. Both Frasers Groupand Norges Bank (Norway’s sovereign wealth fund) have increased their stakes, adding to the idea that the company is indeed starting to recover.

The interest of long-term players with deep pockets is undoubtedly a good sign. eyeQ, however, is warning that the recent rally has run ahead of macro fundamentals. The former may mean you disregard a systematic bearish signal, but the message from our model is that these aren’t great levels to chase.

International Top 10

Source: eyeQ. Long Term strategic models. Data correct as at 31 July 2026.

Thermo Fisher Scientific

Strong Q2 earnings were the catalyst for a bounce in the life sciences company. The sector is hot right now with many investors viewing it as an area that will benefit from artificial intelligence (AI). So, encouraging news at the company level means there are two tailwinds.

Sadly, the third, top-down tailwind is missing. eyeQ model value is flatlining in the low $500 area. Macro doesn’t yet support additional upside. Indeed, the stock has run ahead of big picture forces like economic growth and inflation. It’s almost 10% rich to eyeQ model value, which is enough to trigger a new bearish signal.