5 Undervalued Stocks That Crushed Earnings

Plus: Nvidia’s stock split, top-performing large value funds, and what the consumer spending slowdown could mean for stocks. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=54619&elqTrackId=5e59c8cde36b44f1acd53803abf68764&elq=89ff9515f78043cc8233a1f0403c5ab7&elqaid=54619&elqat=1&elqCampaignId=27736) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [5 Undervalued Stocks That Crushed Earnings]( - [Why Stocks Are Hitting Record Highs—and What Could Send Them Back to Earth]( - [What Does Nvidia’s Stock Split Mean for Investors?]( - [13 Top Performing Large-Value Funds]( - [AI vs. Consumer Spending and the Market Outlook]( Markets are all about expectations. That’s a big part of the earnings season game, when companies talk down expectations so they can look like champs when they beat their estimates. Then there’s Nvidia. Expectations were already running high for the stock, which is now the third largest in the United States (after Microsoft and Apple) and has become a bellwether for the artificial intelligence boom. And Nvidia crushed it. Morningstar analyst Brian Colello [explains what investors need to know]( about Nvidia’s latest earnings and his new fair value estimate of the stock. The other big news out of Nvidia was its announcement that with shares trading north of $1,000, it will do a 10-for-1 stock split. What does that mean for investors? [We explain](. Even before getting a boost from Nvidia’s results, the stock market had been hitting new highs. Given that the Federal Reserve now seems unlikely to cut interest rates until later this year, what’s been giving the market a lift? [What are the risks? Sarah Hansen takes a look](. It also turns out that there’s a growing divergence between two key factors in the outlook. On the one hand, as seen with Nvidia, AI technologies show no signs of slowing down. But consumers are also starting to feel a pinch. What could this mean for the stock market? [What’s the best way to play a consumer spending slowdown? Here’s our story](. Lastly this week, we’ve got a screen of large value funds. We looked for the best performers and offerings from [Oakmark, Putnam, and Vanguard]( made the cut. That’s it for this week! As always, check out our [Markets page]( for our latest coverage, live stock market updates, and [our weekly calendar]( of key upcoming data and events. [5 Undervalued Stocks That Crushed Earnings for Q1 2024]( [5 Undervalued Stocks That Crushed Earnings for Q1 2024]( Lyft, Pfizer, and Lazard are among those that are still cheap despite impressive earnings beats. Bella Albrecht [See Stocks]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?]( [AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?]( Optimism about the economy, inflation and the Fed are lifting stocks, but risks remain. Sarah Hansen [What Does Nvidia’s Stock Split Mean for Investors?]( [What Does Nvidia’s Stock Split Mean for Investors?]( The semiconductor giant’s stock will carry a fair value estimate of $105 after its 10-for-1 split. Sarah Hansen [AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?]( [AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?]( What a consumer spending slowdown could mean for the stock market outlook, and how to play it. Sarah Hansen [13 Top Performing Large-Value Funds]( [13 Top Performing Large-Value Funds]( Oakmark, Putnam, and Vanguard are among the funds with the best track records in the category. Frank Lee [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( PCE Inflation, Fed Beige Book, and Salesforce earnings on deck. Bella Albrecht [After Earnings, Is Roblox Stock a Buy, Sell, or Fairly Valued?]( [After Earnings, Is Roblox Stock a Buy, Sell, or Fairly Valued?]( With bookings up but player engagement slowing, here’s what we think of Roblox stock. Michael Hodel [After Earnings, Is Walmart Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Walmart Stock a Buy, a Sell, or Fairly Valued?]( With continued operating margin expansion and robust comparable sales growth, here’s what we think of Walmart stock. Noah Rohr [After Earnings, Is Uber Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Uber Stock a Buy, a Sell, or Fairly Valued?]( With strong bookings growth and Strategic Partnerships, Here’s Our Take on Uber Stock Malik Ahmed Khan [After Earnings, Is Home Depot Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Home Depot Stock a Buy, a Sell, or Fairly Valued?]( With a decline in sales and efforts to gain positive growth, here’s what we think of Home Depot’s stock. Grace Na [After Earnings, Is Applied Materials Stock a Buy, Sell, or Fairly Valued?]( [After Earnings, Is Applied Materials Stock a Buy, Sell, or Fairly Valued?]( With sales slightly above expectations, here’s what we think of Applied Materials’ stock. William Kerwin [Is Berkshire Hathaway’s Mystery Stock a Buy?]( [Is Berkshire Hathaway’s Mystery Stock a Buy?]( Warren Buffett likes this narrow-moat large-cap company so much that it’s now among Berkshire’s top 10 holdings. Brett Horn [Proxy Votes This Week at Amazon, Schwab, and Morgan Stanley]( [Proxy Votes This Week at Amazon, Schwab, and Morgan Stanley]( Investors weigh in on facial recognition, workers’ rights, pay equity, and climate financing. Leslie Norton [Dan Ivascyn: The Outlook for Bonds Amid a Covid ‘Aftershock Global Economy’]( [Dan Ivascyn: The Outlook for Bonds Amid a Covid ‘Aftershock Global Economy’]( Pimco’s global CIO on the macro outlook, why resilience matters, navigating the rate cycle, China, and more. Jeffrey Ptak [5 Stocks to Buy While They’re Trading at Big Discounts]( [5 Stocks to Buy While They’re Trading at Big Discounts]( Plus, our take on Nvidia ahead of earnings. David Sekera, Susan Dziubinski [3 Great ETFs to Play a Rebound in Small-Value Stocks]( [3 Great ETFs to Play a Rebound in Small-Value Stocks]( Small-value stocks present an opportunity in an increasingly large-growth world. Bryan Armour [Should You Buy and Hold an Artificial Intelligence Portfolio?]( [Should You Buy and Hold an Artificial Intelligence Portfolio?]( The lesson from internet stocks. John Rekenthaler [The Best Funds for Rebalancing in 2024]( [The Best Funds for Rebalancing in 2024]( These top-rated ETFs and mutual funds can bring balance to portfolios with out-of-whack asset allocations. Susan Dziubinski [Should You Reconsider Dividend Funds?]( [Should You Reconsider Dividend Funds?]( New ETF choices are challenging the status quo. Daniel Sotiroff Chart of the Week [Is the Stock Market Too Concentrated?]( [Is the Stock Market Too Concentrated?]( History says no. John Rekenthaler [Find Out Now]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Nvidia: AI Demand Smashes Expectations Again]( We’re raising our fair value estimate for the stock after another stellar set of quarterly results. Brian Colello [Snowflake: Mixed News, But Signs of Stability]( Snowflake stock mildly undervalued, but investment needs weigh on margins. Eric Compton [Target: Margins Hold Up, but Top Line Constrained by Weak Discretionary Spending]( We think Target’s top line should improve in coming quarters; its stock remains overvalued. Noah Rohr [Lowe’s: Tumultuous Macro Weighs on Near-Term Results but Fails to Sway Our Long-Term View]( Even with a 3% price drop following the report, Lowe’s stock appears rich. Jaime Katz, Grace Na [Macy’s: Plan Taking Shape Despite Tough Environment]( We continue to rate Macy’s stock as undervalued. David Swartz [JPMorgan Investor Day: CEO Dimon Pushes Against More Stock Buybacks at Current Prices]( Management has positioned the bank to weather near-term macroeconomic challenges better than its peers. Suryansh Sharma [Morningstar Company Reports]( See More 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_smartinvestor&utm_content=54619) 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