Big-Box Retailing Stocks See Strength in Consumer Spending

For now, the underpinnings of the market appear more stable. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=38125&elqTrackId=eb46dabf3f3748269491dbeb1401cb87&elq=3db877cb7e6b47e7bfa8ca41ca5f9353&elqaid=38125&elqat=1&elqCampaignId=17869) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Twitter: [@LauricellaTom]( [Tom Lauricella] Everything in the world seems to happen so much faster now, and that includes the markets. With the market’s gains through early this past week, it took about two months for the stock market to rally back nearly 20% from its bear market lows. In other words, in less than two months, we went from an “official” bear market to the brink of an “official” bull market. (The 2020 bear market lasted just 33 days.) Of course it’s still possible this rally could completely falter and stocks could fall back to new lows, which would be one heck of a [vicious bear trap](. But for now, the underpinnings of the market appear more stable. As [we noted last week]( a growing number of stock market strategists believe that the worst is over for the stock market. And this week, we’ve gotten evidence from the country’s biggest retailers that while consumers are shifting what they are spending money on, Americans continue to be hitting the stores and shopping online, a good sign for the economy. Meanwhile, despite the rally back in stocks since mid-June, there continue to be opportunities for long-term investors. That’s especially true among growth stocks, which were ground zero for the bear market selloff. As [we write about here]( there are plenty of high-quality growth stocks still on sale. For investors still feeling cautious, there are dividend payers out there that offer opportunities, [as we explore here]( in our interview with JPMorgan’s Clare Hart, one of the top dividend-fund managers around. And as we wrap up earnings season, we also screened from among the stocks covered by Morningstar’s analysts for names that are both undervalued and crushed second-quarter earnings. [We came up with six names]( among those left undervalued even after earnings rallies on solid results. [Big-Box Retailing Stocks See Strength in Consumer Spending]( [Big-Box Retailing Stocks See Strength in Consumer Spending]( How Walmart and Home Depot beat estimates. Sandy Ward [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [6 Undervalued Stocks That Crushed Earnings]( [6 Undervalued Stocks That Crushed Earnings]( Citigroup, Stellantis, and GSK are among those left undervalued even after earnings rallies on solid results. Jakir Hossain [3 Stocks That Will Benefit From the Inflation Reduction Act]( [3 Stocks That Will Benefit From the Inflation Reduction Act]( These climate-related companies are well positioned to profit. David Sekera [EE Bonds Vs. I Bonds]( [EE Bonds Vs. I Bonds]( Which is the better deal? John Rekenthaler [Diversification in a Bear Market]( [Diversification in a Bear Market]( Yes, almost everything is down this year, but diversification is still your friend. Russel Kinnel [The Companies That Stand to Win and Lose From the Inflation Reduction Act]( [The Companies That Stand to Win and Lose From the Inflation Reduction Act]( First Solar, SunPower poised to benefit. Pharmaceutical companies not expected to see major changes to fair value estimates. David Sekera Chart of the Week [7 Undervalued Quality Growth Stocks]( [7 Undervalued Quality Growth Stocks]( Easing supply chain pressures, falling energy prices should put continued downward pressure on inflation. Lauren Solberg [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [Why Pimco Income Fund Remains a Good Investment]( This multisector bond fund run by veteran managers is resilient, says Morningstar's analyst. Eric Jacobson [Where Do Active Fund Managers Hold the Upper Hand?]( These are the markets where active managers reign supreme. Bryan Armour [Anti-ESG Sentiment Gains Spotlight but Not Support]( Though these shareholder proposals received a lot of attention this proxy season, they garnered few votes. Ruth Saldanha [Where a Top Dividend-Fund Manager is Finding Quality Stocks]( With a long-term focus, JPMorgan's Clare Hart holds stocks like UnitedHealth, Philip Morris, and Analog Devices. Tom Lauricella [Amazon Stock Is One of Our Top Picks]( The shares of the e-commerce and cloud services leader are undervalued, Morningstar’s analyst says. Dan Romanoff [The Best Investments for Taxable Accounts]( With some care, investors can build a tax-efficient portfolio that’s diversified, too. Christine Benz [How Portfolio Rebalancing Has Helped Investors in 2022]( It's not a panacea but has helped limit some losses. Amy C. Arnott [3 Short-Term Bond Funds to Calm Interest-Rate Jitters]( These funds will limit your risk—and your returns. Russel Kinnel Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. 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](. © 2022 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602