New Dividend Stocks: Can Meta and Salesforce Help Revive the Classic Strategy?

Plus: Should You Invest In Japan Now That Rates Have Risen? Why Big Bank Stocks Are No Longer Cheap and 5 Stocks to Buy From the Best Money Managers [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=52845&elqTrackId=cd78d936c14541f0a447509b77b026cb&elq=56995f60e42c483f99e55d8e4f9d0563&elqaid=52845&elqat=1&elqCampaignId=26710) [Stock Strategist] Stock Strategist March 25, 2024 Good Morning! Here's the rundown of what's happening in the stock market. It isn’t just AI-related stocks that have been rallying. Some old-economy names have been doing well, including bank stocks. After taking a beating during last spring’s [regional bank crisis]( these stocks have bounced and are no longer trading in bargain territory. We look at whether the bank stock rally has run its course and if there are still attractive names. That said, we do have an update on Nvidia this week after its big developers conference. We’ve raised our fair value estimate on this high-flying stock. You can find the details from Morningstar equity strategist Brian [Colello here](. Economic Releases Scheduled for the Coming Week - Monday, March 25 - Feb. [New Home Sales]( (seasonally adjusted annual rate): 667.5K vs. 661.0K in Jan. - Tuesday, March 26 - Feb. [Durable Orders]( (month to month): 1.0% vs. -6.2% in Jan. - March [Consumer Confidence Survey:]( 107.8K vs. 106.7K in March - Thursday, March 28 - [Initial Unemployment Insurance Claims]( report for the week ended March 23: 212.5K vs. 210.0K for the week ended March 16 - Q4 [GDP]( (seasonally adjusted annual rate): 3.3% vs. 3.2% in Q3 - March [Chicago PMI]( 45.7 vs. 44.0 in Feb. - Friday, March 29 - Markets closed in observance of Good Friday - Feb. [Personal Income and Outlays]( report - Personal Income (month to month): 0.4% vs. 1.0% in Jan. - Personal Consumption Expenditure (month to month): N/A vs. 0.2% in Jan. - PCE Deflator (year over year): 2.5% vs. 2.4% in Jan. - Core PCE Deflator (year over year): 2.8% vs. 2.8% in Jan. All consensus estimates are sourced from FactSet. For The Trading Week Ended March 22: - The Morningstar US Market Index rose 2.29%. - The best-performing sectors were communication services, up 3.41%, and industrials, up 2.99%. - The worst-performing sector was real estate, down 0.15%. - Yields on 10-year US Treasury notes fell to 4.22% from 4.31%. - West Texas Intermediate crude prices fell 1.37% to $80.82 per barrel. - Of the 704 US-listed companies covered by Morningstar, 539, or 77%, were up, five were unchanged, and 160, or 23%, were down. Which Stocks Are Up? Gap [GPS]( Micron Technology [MU]( Lyft [LYFT]( Sabre [SABR]( and Rocket Companies [RKT](. Which Stocks Are Down? Lululemon Athletica [LULU]( Accenture [ACN]( Hanesbrands [HBI]( Sinclair [SBGI]( and EPAM Systems [EPAM](. And Don't Miss: - [Should You Invest In Japan Now That Rates Have Risen?]( - [Why Big Bank Stocks Are No Longer Cheap]( - [49% Undervalued, This Dividend Stock Is a Buy After Fair Value Boost]( - [5 Stocks to Buy From the Best Money Managers]( - [The Best Technology Stocks to Buy]( Did a friend forward this email? You can [sign up for free here](. ADVERTISEMENT [media]( [media] [New Dividend Stocks: Can Meta and Salesforce Help Revive the Classic Strategy?]( [New Dividend Stocks: Can Meta and Salesforce Help Revive the Classic Strategy?]( Also, Morningstar forecasts five interest-rate cuts in 2024, and why Adobe’s outlook is slightly disappointing. David Harrell, Ivanna Hampton, Preston Caldwell [Find Out Now]( Share: [facebook]( [twitter]( [linkedin]( [Should You Invest In Japan Now That Rates Have Risen?]( [Should You Invest In Japan Now That Rates Have Risen?]( The key question for investors is whether the stock rally can be sustained. James Gard [Why Big Bank Stocks Are No Longer Cheap]( [Why Big Bank Stocks Are No Longer Cheap]( Despite positive fundamentals, the bank rally may not continue. Sarah Hansen [49% Undervalued, This Dividend Stock Is a Buy After Fair Value Boost]( [49% Undervalued, This Dividend Stock Is a Buy After Fair Value Boost]( We think this company is back on track with its plans for accelerating share repurchases and dividends. Stephen Ellis [After Nvidia’s GTC Conference, We Raise the Stock’s Fair Value to $910]( [After Nvidia’s GTC Conference, We Raise the Stock’s Fair Value to $910]( We’ve taken a fresh look at our model assumptions and we’re more optimistic about future industry capital expenditure on AI graphics processors. Our fair value for the stock has been raised from $730 to $910. Brian Colello [16 Water Stocks and Funds to Consider]( [16 Water Stocks and Funds to Consider]( Not all water funds are in the same boat. A quick guide to investing in water solutions. Mahi Roy [5 Stocks to Buy From the Best Money Managers]( [5 Stocks to Buy From the Best Money Managers]( These undervalued stocks are popular with top-rated concentrated fund managers. Susan Dziubinski [3 Top Stocks to Watch From the Best International Money Managers]( [3 Top Stocks to Watch From the Best International Money Managers]( Managers of highly rated funds own these foreign stocks. Should you? Susan Dziubinski [Why The Magnificent-Seven-Driven Stock Market Rally Makes Sense to BlackRock’s Li]( [Why The Magnificent-Seven-Driven Stock Market Rally Makes Sense to BlackRock’s Li]( Earnings and the outlook for tech stock growth support the move higher in stocks. Sarah Hansen [Game Over for Hard-to-Borrow Stocks?]( [Game Over for Hard-to-Borrow Stocks?]( Short squeezes may mean more persistent overpricing (and crashes) of meme stocks. Larry Swedroe [One Fifth of Applied Materials Shareholders Vote to Address the Pay Gap]( [One Fifth of Applied Materials Shareholders Vote to Address the Pay Gap]( Climate change, AI, elections, and unionization are themes in proxy season. Leslie Norton [Reddit Stock Surges in IPO ]( [Reddit Stock Surges in IPO]( Shares of the buzzy social-media platform climbed 48% from their IPO price. Sarah Hansen [The Best Technology Stocks to Buy ]( [The Best Technology Stocks to Buy]( These 7 undervalued stocks offer attractive prices in a predominantly overvalued sector. Sbidag Demerjian [5 Stocks to Buy When the Market Falls]( [5 Stocks to Buy When the Market Falls]( Plus, whether hotter inflation readings could delay interest-rate cuts. David Sekera, Susan Dziubinski [The Best US Stock Index Funds]( [The Best US Stock Index Funds]( Their prices are very much right. John Rekenthaler [Apple: We’re Comfortable With Our Thesis In Light of Antitrust Lawsuit]( [Apple: We’re Comfortable With Our Thesis In Light of Antitrust Lawsuit]( We don’t foresee the suit resulting in a significant demolition of Apple’s business or moat. William Kerwin [The Best Women-Run Companies to Own: 2024 Edition]( [The Best Women-Run Companies to Own: 2024 Edition]( These firms have carved out lasting competitive advantages and are led by female CEOs. Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or plans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=52845) Thanks for reading! Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602