Will Earnings From These 10 AI Stocks Live Up to the Hype?

Plus, Don't Miss This Undervalued 5-Star Dividend Stock to Buy With a 3.7% Yield. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=53524&elqTrackId=0986da744401447e98010badc4ef19e0&elq=67028c2a39af448697900466a49a126d&elqaid=53524&elqat=1&elqCampaignId=27142) [Stock Strategist] Stock Strategist April 22, 2024 Morning! Here's the rundown of what's happening in the stock market. As earnings season continues, a major area of focus will be AI stocks and whether they can live up to the hype that has been driving prices higher, Bella Albrecht checked in with Morningstar’s tech analysts to see what they will be watching for among [10 of the biggest players in the AI space](. Our earnings coverage also includes previews of Big Tech earnings, including [Amazon]( [Meta]( [Microsoft]( [Alphabet]( and [Tesla](. We’ve also got our analysts’ readings on earnings from [Netflix]( [United Airlines]( and [Proctor & Gamble](. For a complete look at Morningstar’s take on first-quarter earnings, check out our [new company earnings page](. Highlights of This Week’s Market and Investing Events: - Monday, April 22 - Earnings from Verizon Communications [VZ]( - Tuesday, April 23 - April [Purchasing Managers Index Composite]( earnings from GE Aerospace [GE]( General Motors [GM]( Tesla [TSLA]( - Wednesday, April 24 - March Durable Orders, earnings: AT&T [T]( Boeing [BA]( Ford Motor [F]( Meta Platforms [META]( ServiceNow [NOW]( - Thursday, April 25 - Corporate Earnings: American Airlines [AAL]( PG&E [PCG]( Alphabet [GOOGL]( Microsoft [MSFT]( Snap [SNAP]( - Friday, April 26 - March PCE Deflator, earnings from Exxon Mobil [XOM]( Check out our full [weekly calendar]( of economic reports and corporate earnings. For The Trading Week Ended April 19: - The Morningstar US Market Index fell 3.07%. - The best-performing sectors were utilities, up 1.81%, and consumer defensive, up 1.24%. - The worst-performing sector was technology, down 7.04%. - Yields on 10-year US Treasury notes rose to 4.62% from 4.50%. - West Texas Intermediate crude prices fell 3.89% to $83.22 per barrel. - Of the 704 US-listed companies covered by Morningstar, 216, or 31%, were up, three were unchanged, and 485, or 69%, were down. Which Stocks Are Up? United Airlines [UAL]( UnitedHealth Group [UNH]( Paramount Global [PARA]( Genuine Parts [GPC]( and Envestnet [ENV](. Which Stocks Are Down? ChargePoint [CHPT]( SolarEdge Technologies [SEDG]( Exact Sciences [EXAS]( Coinbase Global [COIN]( and Tesla [TSLA](. And Don't Miss: - [Will Earnings From These 10 AI Stocks Live Up to the Hype?]( - [4 Undervalued Semiconductor Stocks]( - [19 Best Healthcare Companies to Invest In]( - [Best Financial-Services Companies to Own]( - [A 5-Star Dividend Stock to Buy With a 3.7% Yield]( Did a friend forward this email? You can [sign up for free here](. ADVERTISEMENT [media]( [media] [Will Earnings From These 10 AI Stocks Live Up to the Hype?]( [Will Earnings From These 10 AI Stocks Live Up to the Hype?]( What to watch for in Q1 reports from Nvidia, Microsoft, Amazon, Broadcom, and more. Bella Albrecht [See the Stocks]( Share: [facebook]( [twitter]( [linkedin]( [Going Into Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?]( Looking at Amazon’s critical growth drivers, here’s what we think of its stock. Dan Romanoff [Going Into Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?]( With the rebound in digital advertising and its AI push, here’s what we think of Alphabet’s stock. Michael Hodel [Going Into Earnings, Is Microsoft a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Microsoft a Buy, a Sell, or Fairly Valued?]( Watching Azure and updates on AI products, here’s what we think of Microsoft stock. Dan Romanoff [Going Into Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?]( With a focus on profits and margins, here’s what we think of Tesla stock. Seth Goldstein [Going Into Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?]( With continued growth across its platforms, here’s what we think of Meta stock. Michael Hodel [4 Undervalued Semiconductor Stocks]( [4 Undervalued Semiconductor Stocks]( Amid the Nvidia-led AI boom, Infineon and STMicroelectronics are among Morningstar’s top picks. Diana Anghel [Israel’s Response to Iran’s Strike Confirms Minimal Escalation View; Oil Markets Remain Oversupplied]( [Israel’s Response to Iran’s Strike Confirms Minimal Escalation View; Oil Markets Remain Oversupplied]( Events support our view that both parties wish to de-escalate tensions. Stephen Ellis [19 Best Healthcare Companies to Invest In]( [19 Best Healthcare Companies to Invest In]( These companies largely earn their competitive advantage from intangible assets, and their stocks are great choices for an investor’s watchlist. Emelia Fredlick, Benjamin Slupecki [Proxy Season 2024: How to Act Like an Owner]( [Proxy Season 2024: How to Act Like an Owner]( The basics of proxy voting and Morningstar’s analysis of the themes and companies that will dominate this year. Leslie Norton [Best Financial-Services Companies to Own]( [Best Financial-Services Companies to Own]( What drives these firms’ competitive advantages varies by industry. Margaret Giles [A 5-Star Dividend Stock to Buy With a 3.7% Yield]( [A 5-Star Dividend Stock to Buy With a 3.7% Yield]( The stock of this narrow-moat company is undervalued by a remarkable 50%. Seth Goldstein [6 Surprising Stocks to Buy Now]( [6 Surprising Stocks to Buy Now]( The undervalued stocks of these recently downgraded companies look attractive for investors who don’t mind uncertainty. Susan Dziubinski [Salesforce: Our Initial High-Level View of Possible Informatica Acquisition Is Negative]( [Salesforce: Our Initial High-Level View of Possible Informatica Acquisition Is Negative]( Since there is no official announcement, we are addressing the news without context such as deal price, rationale, or longer-term plans. Dan Romanoff [2 Cheap Growth Stocks to Buy During 2Q]( [2 Cheap Growth Stocks to Buy During 2Q]( These undervalued stocks from the growth side of the Morningstar Style Box are among our analysts’ favorites today. Susan Dziubinski [The 10 Best Dividend Stocks]( [The 10 Best Dividend Stocks]( These undervalued stocks with reliable dividends are worth considering. Susan Dziubinski [Tesla: Staff Reduction Confirms Our View of Focus on Profits In 2024]( [Tesla: Staff Reduction Confirms Our View of Focus on Profits In 2024]( We recommend investors wait for a larger margin of safety before considering entry. Seth Goldstein [Big Banks: High Interest Rates and Sticky Inflation Haven’t Dented Consumer Spending ]( [Big Banks: High Interest Rates and Sticky Inflation Haven’t Dented Consumer Spending]( But changing spending patterns bear watching. Sarah Hansen [6 Stocks to Sell and 6 Stocks to Buy Instead]( [6 Stocks to Sell and 6 Stocks to Buy Instead]( Plus our take on the latest inflation figures and big bank earnings. David Sekera, Susan Dziubinski [Procter & Gamble Earnings: Muted Sales Growth Doesn’t Reflect a Stained Brand Mix]( [Procter & Gamble Earnings: Muted Sales Growth Doesn’t Reflect a Stained Brand Mix]( Though we don’t view the stock as a bargain, we think investors should keep it on their radar. Erin Lash [Netflix Earnings: Incredible Quarter, but Investors Fear Slowdown]( [Netflix Earnings: Incredible Quarter, but Investors Fear Slowdown]( We’re raising our fair value estimate for Netflix stock after another great quarter, but the recent level of success can’t be sustained. Matthew Dolgin [United Airlines Earnings: Strong Revenue Offset by Ongoing Investments]( [United Airlines Earnings: Strong Revenue Offset by Ongoing Investments]( Due to its spaced-out and higher capital spending forecast, we have lowered our fair value estimate of United’s stock. Nicolas Owens [Morningstar's Company Reports]( [Morningstar's Company Reports]( Discover actionable insights today. 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 pans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=53524) Thanks for reading! 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