Value-Stock Picks from Oakmark’s Bill Nygren

Plus: 5 undervalued semiconductor stocks, high-yielding Treasury ETFs and top-performing value funds. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=45432&elqTrackId=6791f878213e4a6e9f0ff5c5ab5d08ea&elq=a4ce8165589f41d28e8dfd5de1ec6f56&elqaid=45432&elqat=1&elqCampaignId=22183) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this newsletter: - [5 Value Stocks From Oakmark’s Bill Nygren]( - [Fading Recession Fears, Cheap Valuations Have Small-Cap Stocks Looking Attractive]( - [Top-Performing Large-Value Stock Funds]( - [5 Undervalued Semiconductor Stocks]( - [High-Yielding U.S. Treasury ETFs]( I’m about ready to flyer my neighborhood with posters that say “Missing: 2023 Recession. Please call Tom if found.” With the [jobs report]( again coming in much stronger than expected, its looking like the most-anticipated recession in history is still being anticipated. In the markets, that’s meant that those expectations for a Federal Reserve rate cut during the third quarter have been throttled back significantly. While a strong jobs market may not bring about lower interest rates, it could be good news for a corner of the stock market that’s been struggling: small company stocks.[As Sandy Ward writes]( small cap stocks are the cheapest they have been in a looong time and a lack of a recession, or a shallow one, might only make the story more compelling. But if there’s one corner of the market that has already been red hot, its semiconductor stocks. Chip makers had a brutal 2022, but 2023 is shaping up to be barnburner on the back of demand – not just hype - from artificial intelligence. The poster child for this rally is Nvidia, up an eye-popping 160% this year. That’s not a typo. But should investors jump into Nvidia now? Here’s the [Morningstar take](. We also screened the rest of the semiconductor stock universe for undervalued names. [We found five]( that trade below Morningstar’s valuation estimates and have a long-term competitive edge. Market noise and short-term macro trends make it easy to lose sight of the fact that for most of us our investment time horizon is many years. One person who doesn’t get caught up in short-term is veteran value fund manager Bill Nygren, who runs the top-performing Oakmark Fund. In the first of an occasional feature, [Nygren highlights five stocks]( – two winners, one stock that has struggled and two others he thinks offer the possible for solid long-term returns. Purely by accident – it’s true – our weekly fund screen this week looks for large-value stock funds with the best track records. It so happens one of those is Oakmark. You find out which other large-value funds have been able to best reward investors [here](. Meanwhile, we continue to explore the new, higher-rate investing landscape and the opportunities it presents for your portfolio. This week we screened for some of the [highest-yielding U.S. Treasury ETFs]( with top ratings from Morningstar analysts. That’s it for this week. As always, you can find all our [markets coverage here]( along with our new live U.S. stock market report that offers up an easy way to keep up to date on what’s happening during the trading day. [5 Stocks With Oakmark’s Bill Nygren]( [5 Stocks With Oakmark’s Bill Nygren]( A look at some of Nygren’s favorite stocks, including Alphabet, ConocoPhillips, and First Citizens BancShares. Tom Lauricella [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [An Undervalued Stock With 50%-Plus Upside to Buy and Hold]( [An Undervalued Stock With 50%-Plus Upside to Buy and Hold]( This cheap stock offers long-term investors a way to play one of today’s top growth trends. Seth Goldstein [Top Stock Gainers and Losers of May 2023]( [Top Stock Gainers and Losers of May 2023]( Palantir, Zscaler, and Marvell Technology stocks jump, while Advance Auto Parts, First Horizon, and Paramount Global stocks plunge. Jakir Hossain [Is Nvidia Stock a Buy, Sell, or Fairly Valued After Earnings?]( [Is Nvidia Stock a Buy, Sell, or Fairly Valued After Earnings?]( With AI-driven demand lifting first-quarter earnings, here’s what we think of Nvidia stock. Brian Colello [5 Top-Performing Large-Value Stock Funds]( [5 Top-Performing Large-Value Stock Funds]( Vanguard and Oakmark are among the value-stock strategies with the top returns. Sadhika Thapa [Joel Tillinghast: The Art of Investing]( [Joel Tillinghast: The Art of Investing]( The legendary Fidelity manager discusses his biggest investing mistake, the implications of AI for portfolio management, and how private equity affects investors in public securities. Christine Benz [4 Equity Funds With High Portfolio Turnover]( [4 Equity Funds With High Portfolio Turnover]( Investors bear these strategies’ hidden costs. Sachin Nagarajan [They Came. They Saw. They Incinerated Half Their Funds’ Potential Returns. ]( [They Came. They Saw. They Incinerated Half Their Funds’ Potential Returns.]( Tactical allocation funds of funds would have earned twice as much if their managers didn’t trade over the past decade. Jeffrey Ptak [1 in 3 Amazon Shareholders Unhappy With Executive Pay Practices]( [1 in 3 Amazon Shareholders Unhappy With Executive Pay Practices]( 32% of Amazon shareholders voted against the company’s executive compensation in the “say on pay” proposal. Other proposals, including collective bargaining, also earned wide support. Lindsey Stewart [A Merger of Equals? Two Mediocre Fund Companies Combine]( [A Merger of Equals? Two Mediocre Fund Companies Combine]( Two families with Average Parent Ratings, Franklin Templeton and Putnam Investments, to merge. Russel Kinnel [What Higher Yields Mean for Retired ‘Bucket’ Investors]( [What Higher Yields Mean for Retired ‘Bucket’ Investors]( How to manage retirement income distributions in today’s market. Christine Benz [Is Home Depot Stock a Buy, a Sell, or Fairly Valued After Earnings?]( [Is Home Depot Stock a Buy, a Sell, or Fairly Valued After Earnings?]( With softer consumer demand and sales, here’s what we think of Home Depot stock. Jaime M. Katz [The Best International Stock Funds]( [The Best International Stock Funds]( These international mutual funds and ETFs all earn Morningstar Medalist Ratings of Gold in 2023. Susan Dziubinski [A Fund Shop Bets the Ranch on One Stock]( [A Fund Shop Bets the Ranch on One Stock]( Horizon Kinetics’ love affair with Texas Pacific Land raises questions about conflicts of interest with no exit strategy in sight. Russel Kinnel, Andrew Redden, Robby Greengold [5 U.S. Treasury ETFs With High Yields]( [5 U.S. Treasury ETFs With High Yields]( These highly rated ETFs from Vanguard and others are paying their fattest yields in years. Katherine Lynch [Fading Recession Fears, Cheap Valuations Have Small-Cap Stocks Looking Attractive]( [Fading Recession Fears, Cheap Valuations Have Small-Cap Stocks Looking Attractive]( Some say small-caps could be poised to take the lead in the market. Sandy Ward Chart of the Week [5 Undervalued Semiconductor Stocks]( [5 Undervalued Semiconductor Stocks]( Chip stocks are on the rise after a disappointing 2022, but these names still look cheap. Margaret Guidici [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [6 Top-Performing Large-Growth Funds]( These funds have delivered for investors through a difficult market for large-growth stocks. [The Best Places to Park Your Short-Term Investments]( Yields are important, but so are liquidity considerations and guarantees. [7 Stocks From Companies Generating High Cash Flow]( Broadcom and Bristol-Meyers Squibb are among the high-quality stocks with strong operating performance and manageable debt. [The Ultimate Buy and Hold Portfolio]( Would stashing away 1986′s stock-market leaders have been a sound investment strategy? [5 Stocks That Crushed Earnings in Q1 2023]( Citigroup and DoorDash are among those that are still cheap despite impressive earnings beats. 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](. © 2023 Morningstar, Inc. 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