5 Stocks With the Largest Valuation Increases

Plus: What stocks are leading the rally, undervalued energy stocks to play the AI boom, best obesity drug stocks. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=54815&elqTrackId=93c318fff6514ebe8da277d9924c6071&elq=21d83a6193c04745bf7a2204f28c7ba8&elqaid=54815&elqat=1&elqCampaignId=27840) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week’s newsletter: - [10 Stocks With the Largest Fair Value]( Increases After Q1 Earnings]( - [5 Stocks With the Largest Fair Value Estimate Cuts After Earnings]( - [These Stocks Are (Still) Powering the Bull Market]( - [Is the Stock Market Too Concentrated?]( - [Obesity Drug Stocks: Where to Invest Now]( - [5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom]( Can you name the largest publicly traded stock in Europe? I know, I know. For US investors, anything outside our borders is at best an afterthought. But in this case, the answer to the question is tied to a significant trend that is very familiar to many Americans: obesity drugs. The development of obesity drugs has had a massive impact on the pharmaceutical industry investing landscape. This week, we updated a [deep dive into the outlook for pharma stocks]( obesity drugs, and how Morningstar’s pharma analysts think investors can be best positioned to benefit. (Oh, and the answer is Novo Nordisk.) And yes, when it comes to innovation, of course much of the attention is on artificial intelligence and technology stocks. But the ripples from the AI boom are seen spreading across the economy. With that approach, we dig into Morningstar’s view on the stocks of energy companies supplying utilities that are in turn delivering power to AI-focused data centers. [We’ve got five undervalued names to ride this trend](. This past week, we also revisited the question of what’s driving this year’s stock market rally. Even as some observers continue to fret about an overly concentrated stock market, as [Sarah Hansen reports]( Nvidia is responsible for the lion's share of the market's gains over the past few years, followed by the rest of the "Fab Five." So, is a concentrated stock market really something to worry about? John Rekenthaler took a look at what history has to show. [Here’s his answer](. Also this week, we’ve got a [deep dive into a unique mutual fund](. It holds just 30 stocks, has a value tilt, trades once a year – and is crushing the market. Lastly, we continue to recap first-quarter earnings even as the final stragglers report. Bella Albrecht combed through the postearnings valuation changes from Morningstar’s stock analyst and highlights companies with [the biggest valuation increases]( – which includes Squarespace – along with companies that suffered the [largest valuation cuts](. (Sorry, Fastly.) 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. [10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings]( [10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings]( Squarespace and ChampionX saw the largest jumps among US-listed stocks covered by Morningstar analysts. Bella Albrecht [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings]( [5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings]( Fastly and Tilray Brands are among those with the deepest reductions to their valuation estimates. Bella Albrecht [5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom]( [5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom]( Energy Transfer and Kinder Morgan are among the cheap energy stocks poised to benefit from AI-related growth. Oratile Matome [Obesity Drug Stocks: Where to Invest Now]( [Obesity Drug Stocks: Where to Invest Now]( Eli Lilly and Novo Nordisk have staged big rallies. Here’s how investors can approach this potentially huge opportunity. Diana Anghel [Is the Stock Market Too Concentrated?]( [Is the Stock Market Too Concentrated?]( History says no. John Rekenthaler [These Stocks Are (Still) Powering the Bull Market]( [These Stocks Are (Still) Powering the Bull Market]( Nvidia leads the pack, with the rest of the ‘Fab Five’ not far behind. Sarah Hansen [April PCE Report: Sticky Inflation, but Monthly Core Inflation Dips]( [April PCE Report: Sticky Inflation, but Monthly Core Inflation Dips]( The PCE Price Index increased 0.3% in April; excluding food and energy, it was up 0.2%. Tom Lauricella [This Stock Fund Is Trouncing the Market—and Trading Just Once a Year]( [This Stock Fund Is Trouncing the Market—and Trading Just Once a Year]( Hennessy Cornerstone Mid Cap 30 Fund has chalked up big returns with winners such as Abercrombie & Fitch and Super Micro Computer. Gabe Alpert [After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?]( [After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?]( With macro pressures but easier comparisons ahead, here’s what we think of Lowe’s stock. Grace Na [After Earnings, Is Target Stock a Buy, Sell, or Fairly Valued?]( [After Earnings, Is Target Stock a Buy, Sell, or Fairly Valued?]( With strategic price reductions and market positioning shifts, here’s our analysis of Target stock. Noah Rohr [The 10 Best Companies to Invest in Now]( [The 10 Best Companies to Invest in Now]( These undervalued stocks of high-quality companies are attractive investments today. Margaret Giles [When You Should Consider Fundamentally Weighted ETFs]( [When You Should Consider Fundamentally Weighted ETFs]( And how to make the most of this contrarian investment strategy. Mo'ath Almahasneh [Pros and Cons of Donor-Advised Funds]( [Pros and Cons of Donor-Advised Funds]( Donors benefit from an immediate tax deduction, tax-free growth, and investment flexibility. Amy Arnott [5 of the Best Ways to Invest Money]( [5 of the Best Ways to Invest Money]( Here are five common strategies that investors use to save for retirement. Susan Dziubinski Popular This Week [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 [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 [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 [How to Maximize Credit Card Points for Better Trips and Rewards]( Plus, how the programs work, how to avoid pitfalls, and tips for staying organized. David Harrell, Ivanna Hampton [This Vanguard Fund Is a Top Choice for Value Investors]( Vanguard Value ETF offers well-diversified exposure to large-cap value stocks. Mo'ath Almahasneh [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=54815) 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