A Cheap Dividend Aristocrat to Buy Before It Bounces Back

Plus: 3 Hot Stocks to Buy That Still Look Undervalued, Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued? [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=54405&elqTrackId=9bb5d4da32e94f96b0ed747106a34425&elq=bfbb1b35e9c843a780984efab6872283&elqaid=54405&elqat=1&elqCampaignId=27646) [Stock Strategist] Stock Strategist May 20, 2024 Good Morning! Here's the rundown of what's happening in the stock market. The earnings season for the first quarter of 2024 is winding down, and for the most part, the news has been good. By a 73% margin, companies have been beating forecasts, which, even when allowing for the usual game of companies talking down Wall Street estimates, is a strong showing. But we look deeper into the results and come away with [five key takeaways for investors]( on big tech spending, sector returns, and the strength of the consumer. Speaking of earnings, we have Wall Street’s current big kahuna reporting on Wednesday: Nvidia. We checked in with Morningstar analyst [Brian Colello on what he will be watching]( when the semiconductor giant reports results. Also this week, Morningstar’s take on [Disney]( [Arm Holdings]( and [Shopify](. Investing Events: - Tuesday, May 21: Corporate Earnings from Macy’s [M]( Lowe’s [LOW]( - Wednesday, May 22: Corporate Earnings: Nvidia [NVDA]( Snowflake [SNOW]( Target [TGT]( [Minutes]( from the April Federal Open Market Committee meeting Check out our full [weekly calendar]( of economic reports and corporate earnings. For The Trading Week Ended May 17: - The Morningstar US Market Index rose 1.54%. - The best-performing sectors were technology, up 2.93%, and real estate, up 2.44%. - The worst-performing sector was industrials, down 0.38%. - Yields on 10-year US Treasury notes fell to 4.42% from 4.50%. - West Texas Intermediate crude prices rose 0.21% to $79.98 per barrel. - Of the 703 US-listed companies covered by Morningstar, 457, or 65%, were up, one was unchanged, and 245, or 35%, were down. Which Stocks Are Up? Groupon [GRPN]( Plug Power [PLUG]( ChargePoint [CHPT]( SunPower [SPWR]( and AMC Networks [AMCX](. Which Stocks Are Down? Prestige Consumer Healthcare [PBH]( Paramount Global [PARA]( Shoals Technologies [SHLS]( Exact Sciences [EXAS]( and Uniti Group [UNIT](. And Don't Miss: - [A Cheap Dividend Aristocrat to Buy Before It Bounces Back]( - [40 of the Best Investment Picks]( - [Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?]( - [Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?]( Did a friend forward this email? You can [sign up for free here](. ADVERTISEMENT [media]( [media] [A Cheap Dividend Aristocrat to Buy Before It Bounces Back]( [A Cheap Dividend Aristocrat to Buy Before It Bounces Back]( Down more than 20% during the past year, this wide-moat stock looks undervalued today. Dan Su [See the Stock]( Share: [facebook]( [twitter]( [linkedin]( [3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing]( [3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing]( Plus, the stocks Berkshire bought and sold last quarter. Susan Dziubinski [Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?]( With a steady streak of beating earnings and huge AI growth, here’s what to watch when Nvidia reports. Brian Colello [Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?]( [Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?]( A surprising drop in store traffic has Starbucks’ share price at 2019 levels. Oratile Matome [After Earnings, Is Lyft Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Lyft Stock a Buy, a Sell, or Fairly Valued?]( With strong upside in bookings and efficiency initiatives, here’s our take on Lyft stock. Malik Ahmed Khan [Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?]( With a focus on discretionary spending and margins, here’s what we’ll be watching for in Target’s earnings. Noah Rohr [After Earnings and a 56% Rally In 2024, Is Arm Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings and a 56% Rally In 2024, Is Arm Stock a Buy, a Sell, or Fairly Valued?]( With strong results but a lofty valuation, here’s what we think of Arm stock. Javier Correonero [After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?]( With expenses on the rise but its stock down 25%, here’s what we think of Shopify’s outlook. Dan Romanoff [After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?]( With linear networks deteriorating, here’s what we think of Disney’s stock. Matthew Dolgin [After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?]( With generative AI spending driving long-term growth, here’s what we think of Arista Networks’ stock. William Kerwin [After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?]( With strong pricing power and sales growth of key drugs, here’s what we think of Lilly’s stock. Damien Conover [8 Stock Picks in the Apparel Industry]( [8 Stock Picks in the Apparel Industry]( The industry has struggled to find any consistency, but there are attractive long-term opportunities. David Swartz [What to Invest in During High Inflation]( [What to Invest in During High Inflation]( These inflation hedges can help protect your portfolio. Margaret Giles [3 Hot Stocks to Buy That Still Look Undervalued]( [3 Hot Stocks to Buy That Still Look Undervalued]( These top-performing stocks have beaten the market in 2024 yet appear to have more room to run. Susan Dziubinski [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 [How Morningstar Rates Stocks]( [How Morningstar Rates Stocks]( Unpacking the Morningstar Rating for stocks, the Morningstar Economic Moat Rating, and other metrics for evaluating stocks. David Sekera, Susan Dziubinski [5 Things We Learned From the Q1 Earnings Season]( [5 Things We Learned From the Q1 Earnings Season]( Investors are optimistic, thanks to strong profits and encouraging guidance. Sarah Hansen [Tariffs On Chinese EVs Offer US Automakers a Chance to Capture Demand]( [Tariffs On Chinese EVs Offer US Automakers a Chance to Capture Demand]( The US remains on track to see 40% electric vehicle adoption by 2030. Seth Goldstein [When to Reinvest Dividends (or Not) ]( [When to Reinvest Dividends (or Not)]( Making sure you have a system in place to handle dividend proceeds is a small but important task. Amy Arnott [40 of the Best Investment Picks]( [40 of the Best Investment Picks]( We celebrate Morningstar’s 40th anniversary with some of our favorite stock, ETF, and mutual fund picks. Susan Dziubinski [Tech Stock Dividends Are Changing the Face of Dividend Growth Investing]( [Tech Stock Dividends Are Changing the Face of Dividend Growth Investing]( With Alphabet, Meta, and Salesforce paying dividends, what does this mean for investors? Bella Albrecht [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=54405) Thanks for reading! Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. 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