An Undervalued Defensive Stock to Buy With a 4% Yield

Plus: 10 High-Risk Stocks to Avoid, New 4-Star Stocks, and Our Top Credit Card Stock Pick [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=57649&elqTrackId=c2093cf2b0a7477bae66e15fa8887b44&elq=3f7813b386d445a2913f2d1bedf20018&elqaid=57649&elqat=1&elqCampaignId=29415&elqak=8AF5B8E955750D28C6148ED8E6B195876CA94B9D221960F586500B1A1331678498A2) [Stock Strategist] Stock Strategist September 16, 2024 Good Morning! Here's the rundown of what's happening in the stock market. The big focus for most investors this week will be on the Federal Reserve, which is widely expected to unveil a rate cut Wednesday afternoon. Will it be a quarter point? Or will it be a more aggressive half point, and [what kind of message would that send to the markets]( As we await the Fed’s decision, we take a look at the universe of credit card stocks. It’s a group of stocks whose fortunes are closely tied to the economy, and in particular, the health of the consumer. Lately, concerns about credit quality have been building, but valuations are rich. Still Morningstar’s Michael Miller has a top pick in the group that should be able to weather credit trends and yet, [is trading at an attractive price](. In corporate news, Boeing was hit by yet a fresh round of troubles, this time in the form of a machinists union strike. [What does this mean for the stock]( In the pharma stock world, [Moderna announced a strategic overhaul and new financial guidance]( and the news wasn’t great. Lastly, we’ve got a got [an undervalued defensive stock sporting a 4% yield](. It’s one of the cheapest stocks in the sector. Which Stocks Are Up? Chewy [CHWY]( Plug Power [PLUG]( Broadcom [AVGO]( Fastly [FSLY]( Revolve Group [RVLV]( Which Stocks Are Down? Ally Financial [ALLY]( Bread Financial [BFH]( Pilgrim’s Pride [PPC]( Humana [HUM]( Ionis Pharmaceuticals [IONS]( For the Trading Week Ended Sept. 13 - The Morningstar US Market Index rose 4.03%. - The best-performing sectors were technology, up 6.76%, and consumer cyclical, up 5.39%. - The worst-performing sector was energy, down 0.52%. - Yields on 10-year US Treasury notes fell to 3.66% from 3.72%. - West Texas Intermediate crude prices rose 1.04% to $69.29 per barrel. - Of the 703 US-listed companies covered by Morningstar, 550, or 78%, were up, five were unchanged, and 154, or 22%, were down. Don't Miss: - [After Earnings, Is CrowdStrike Stock a Buy, a Sell, or Fairly Valued?]( - [5 Sustainable Food-Related Stocks for Long-Term Investors]( - [10 High-Risk Stocks to Avoid]( - [A Top Credit Card Stock Pick]( - [Should You Ignore Past Stock Market Returns?]( ADVERTISEMENT [media]( [media] [An Undervalued Defensive Stock to Buy With a 4% Yield]( [An Undervalued Defensive Stock to Buy With a 4% Yield]( This dividend stock from a recession-resistant sector looks attractive. Travis Miller [Read More]( Share: [facebook]( [twitter]( [linkedin]( [A Top Credit Card Stock Pick]( [A Top Credit Card Stock Pick]( Despite headwinds, there’s an opportunity for investors. Frank Lee [10 High-Risk Stocks to Avoid]( [10 High-Risk Stocks to Avoid]( Here are the most overvalued stocks that we cover. Susan Dziubinski [New 4-Star Stocks]( [New 4-Star Stocks]( ASML and Micron Technology are among the stocks that have fallen into undervalued territory. Bella Albrecht [5 Sustainable Food-Related Stocks for Long-Term Investors]( [5 Sustainable Food-Related Stocks for Long-Term Investors]( A portfolio specialist at Stewart Investors discusses investing in the food supply chain. Leslie Norton [After Earnings, Is CrowdStrike Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is CrowdStrike Stock a Buy, a Sell, or Fairly Valued?]( With the firm’s retention remaining stable even after the July outage, here’s what we think of CrowdStrike stock. Malik Ahmed Khan [After Earnings, Is Broadcom Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Broadcom Stock a Buy, a Sell, or Fairly Valued?]( With its rapidly growing chip sales and VMware integration, here’s what we think of Broadcom stock. William Kerwin [What Happens to Stocks When the Fed Starts Cutting Rates?]( [What Happens to Stocks When the Fed Starts Cutting Rates?]( The answer: It varies, so be prepared. Sarah Hansen [Should You Ignore Past Stock Market Returns?]( [Should You Ignore Past Stock Market Returns?]( Many investors are influenced by how stocks have recently performed. Should they be? John Rekenthaler [2 Undervalued Stocks That Just Raised Dividends]( [2 Undervalued Stocks That Just Raised Dividends]( Plus 10 more stocks under Morningstar’s coverage with big dividend increases. Tom Lauricella [The 10 Best Dividend Stocks]( [The 10 Best Dividend Stocks]( These undervalued stocks with reliable dividends are worth considering. Susan Dziubinski [The Best Utilities Stocks to Buy]( [The Best Utilities Stocks to Buy]( These undervalued utilities offer appealing dividend yields and the opportunity for growth. Tori Brovet [We Just Downgraded These 2 Companies. Here’s Why You Should Buy Their Stocks Anyway.]( [We Just Downgraded These 2 Companies. Here’s Why You Should Buy Their Stocks Anyway.]( The competitive advantages of these companies have eroded but their stocks are a bargain. Susan Dziubinski [The 2024 Proxy Season: Which ESG Proposals Made the Podium?]( [The 2024 Proxy Season: Which ESG Proposals Made the Podium?]( A shrinking, but important, group of strongly supported Gold, Silver, and Bronze proposals deserves a closer look. Lindsey Stewart [Recent Company Earnings]( [Recent Company Earnings]( Discover new actionable opportunities today with our earnings coverage and analyst insights. Think Like an Analyst With Morningstar Investor Understand funds and stocks from all angles with Morningstar Investor's powerful—and proven—investment ratings and research. Find and compare securities using our comprehensive valuation and performance metrics and get our continuous, unbiased take on the long-term value of thousands of investment opportunities. Investor is your one-stop shop for making better investment decisions. [Start your free trial today](. Thanks for reading! 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