Identifying Fundamental Strategies in Active Investing

In the context of active equity investing, fundamental strategies are utilized by portfolio managers to identify undervalued or overvalued stocks by analyzing various financial metrics. One common approach involves assessing a company's earnings, growth potential, and competitive position within its industry. Consider the following scenarios:

Investor A believes that Company X is undervalued due to its current low price-to-earnings (P/E) ratio compared to its historical averages and its expected earnings growth. Meanwhile, Investor B focuses on a recent analysis that indicates Company Y’s earnings are expected to decline due to increasing competition and market saturation.

Which investor is applying a fundamental strategy to make an investment decision?