This Cheap Stock to Buy Looks 25% Undervalued Even After 40% Rally

Plus: Dell Stock Has Tripled on AI Hopes. Is It a Buy or a Sell? [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=52690&elqTrackId=0a2f5cbf00564af6b767f1fe2c94da9e&elq=3533412161f14e71992c0b54811d09ed&elqaid=52690&elqat=1&elqCampaignId=26582) [Stock Strategist] Stock Strategist March 18, 2024 Good Morning! Here's the rundown of what's happening in the stock market. When it comes to the big story of tech stocks and AI, almost everyone knows about the 300% rally in Nvidia. But [how about the 200%-plus rally in Dell stock]( Yes, the PC maker. We take a look under the cover of the laptop maker to see just how much benefit the company might gain from AI and whether those prospects come anywhere close to a tripling of the stock price. And with the end of earnings season, we’ve screened for the stocks where Morningstar analysts raised their fair value estimates by the widest margins. Yes, one of those names was [Nvidia, but we’ve also got nine other stocks to check out](. We also screened for the names where Morningstar analysts slashed valuations the most [and came up with five stocks](. Economic Releases Scheduled for the Coming Week - Tuesday, March 19 - Feb. [New Residential Construction]( report - Preliminary building permits (seasonally adjusted annual rate): 1,490K vs. 1,489K in Jan. - Housing starts (seasonally adjusted annual rate): 1,460K vs. 1,331K in Jan. - Wednesday, March 20 - March [Federal Open Market Committee]( decision on interest rates - Thursday, March 21 - [Initial Unemployment Insurance Claims]( report for the week ended March 16: 209K vs. 209K for the week ended March 9 - March [Federal Reserve Bank of Philadelphia Index]( 1.0 vs. 5.2 in Feb. - March [Purchasing Managers Index Composite]( 52.2 vs. 52.5 in Feb. - Feb. [Leading Indicators]( (month to month): -0.5% vs. -0.4% in Jan. - Feb. [Existing Home Sales]( (seasonally adjusted annual rate): 3,925K vs. 4,000K in Jan. All consensus estimates are sourced from FactSet. Investor Relations Weekly Calendar: Highlighted Corporate Earnings and More - Thursday, March 21 Corporate Earnings: Lululemon Athletica [LULU]( Nike [NKE]( For The Trading Week Ended March 15: - The Morningstar US Market Index fell 0.28%. - The best-performing sectors were energy, up 3.66%, and basic materials, up 0.90%. - The worst-performing sector was real estate, down 2.92%. - Yields on 10-year US Treasury notes rose to 4.31% from 4.09%. - West Texas Intermediate crude prices rose 2.62% to $81.03 per barrel. - Of the 704 US-listed companies covered by Morningstar, 270, or 38%, were up and 435, or 62%, were down. Which Stocks Are Up? Williams-Sonoma [WSM]( Dick’s Sporting Goods [DKS]( WK Kellogg [KLG]( Gap [GPS]( and 3M [MMM](. Which Stocks Are Down? Groupon [GRPN]( Sunrun [RUN]( SentinelOne [S]( SolarEdge Technologies [SEDG]( and Enphase Energy [ENPH](. And Don't Miss: - [The Magnificent Seven: Fortune or Folly?]( - [Types of Stocks to Buy and Sell Before April]( - [Dell Stock Has Tripled on AI Hopes. Is It a Buy or a Sell?]( - [3 Cheap Stocks to Buy That the Best Value Managers Own]( - [Best Energy Stocks to Buy]( Did a friend forward this email? You can [sign up for free here](. ADVERTISEMENT [media]( [media] [This Cheap Stock to Buy Looks 25% Undervalued Even After 40% Rally]( [This Cheap Stock to Buy Looks 25% Undervalued Even After 40% Rally]( Despite advancing from its October low, the undervalued stock of this narrow-moat company may have more room to run. Shane Ponraj [See Stock]( Share: [facebook]( [twitter]( [linkedin]( [5 Stocks With the Largest Fair Value Estimate Cuts After Q4 Earnings]( [5 Stocks With the Largest Fair Value Estimate Cuts After Q4 Earnings]( Clean energy stocks like SunPower and Plug Power are among the ones with big reductions to their valuations. Bella Albrecht [Dell Stock Has Tripled on AI Hopes. Is It a Buy or a Sell?]( [Dell Stock Has Tripled on AI Hopes. Is It a Buy or a Sell?]( Dell’s stock price is up 213% as the PC maker sees growing AI-related demand for servers. Tom Lauricella [The Magnificent Seven: Fortune or Folly?]( [The Magnificent Seven: Fortune or Folly?]( An impartial look at these stocks’ long-term prospects. John Rekenthaler [The DNA of a Warren Buffett Company]( [The DNA of a Warren Buffett Company]( Companies that make it into Berkshire Hathaway’s portfolio have some common threads in their genetic code. Amy Arnott [Types of Stocks to Buy and Sell Before April]( [Types of Stocks to Buy and Sell Before April]( Here are the investment styles to underweight and overweight as the first quarter winds down. David Sekera, Susan Dziubinski [10 Stocks With the Largest Fair Value Estimate Increases After Q4 Earnings]( [10 Stocks With the Largest Fair Value Estimate Increases After Q4 Earnings]( Nvidia and Carlyle Group saw the largest valuation bumps among US-listed stocks covered by Morningstar analysts. Bella Albrecht [5 Undervalued Stocks to Buy Before They Rise Further]( [5 Undervalued Stocks to Buy Before They Rise Further]( Plus, how to position your stock portfolio in today’s fairly valued market. David Sekera, Susan Dziubinski [3 Cheap Stocks to Buy That the Best Value Managers Own]( [3 Cheap Stocks to Buy That the Best Value Managers Own]( These undervalued stocks appear in the portfolios of highly rated large-cap value funds. Susan Dziubinski [5 Key Lessons to Warren Buffett and Charlie Munger’s Success]( [5 Key Lessons to Warren Buffett and Charlie Munger’s Success]( The legendary investors credited their ability to avoid making dumb decisions—rather than making brilliant ones—for their performance. Greggory Warren, Ivanna Hampton [Will Investors Upvote Reddit’s IPO Despite Tough Ad Market? ]( [Will Investors Upvote Reddit’s IPO Despite Tough Ad Market?]( The buzzy social-media platform is targeting a $6.4 billion valuation in its stock debut. Sarah Hansen [5 Ultracheap Stocks to Buy With the Best Returns on Investment]( [5 Ultracheap Stocks to Buy With the Best Returns on Investment]( These undervalued companies have generated great returns in more ways than one. Susan Dziubinski [Best Energy Stocks to Buy ]( [Best Energy Stocks to Buy]( These 5 undervalued energy stocks look attractive today. Sbidag Demerjian [Should You Keep Foreign Stocks Out of Your IRA?]( [Should You Keep Foreign Stocks Out of Your IRA?]( Tax considerations suggest yes, but other factors may argue against it. Christine Benz [After Earnings, Is Adobe Stock a Buy, Sell, or Fairly Valued?]( [After Earnings, Is Adobe Stock a Buy, Sell, or Fairly Valued?]( With the Figma merger falling flat, here’s what we think of Adobe’s stock. Dan Romanoff [After Earnings, Is Oracle Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Oracle Stock a Buy, a Sell, or Fairly Valued?]( With solid margin performance and improvements in cloud gross margins, here’s what we think of Oracle’s stock. Julie Bhusal Sharma [After Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?]( With favorable margin improvements in Q4, here’s what we think of Target’s stock. Noah Rohr [After Earnings, Is Broadcom Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Broadcom Stock a Buy, a Sell, or Fairly Valued?]( With added vigor to its momentum in AI, here’s what we think of Broadcom stock. William Kerwin [After Earnings, Is MongoDB Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is MongoDB Stock a Buy, a Sell, or Fairly Valued?]( With a big runway for growth but a lofty valuation, here’s what we think of MongoDB’s stock. Eric Compton [The Man Who Knew Too Much]( [The Man Who Knew Too Much]( An investment parable. John Rekenthaler [Markets Brief: Why You Should Watch the Dot Plots at the Fed’s March Meeting]( [Markets Brief: Why You Should Watch the Dot Plots at the Fed’s March Meeting]( Will the Fed signal an interest rate cut in June, but with fewer to follow? Tom Lauricella Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. 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